Texas and Florida led the country in voluntary sales in 2012, according to Eastbridge Consulting Group’s third annual U.S. State ESI and EPI Data report. California followed closely behind, falling from second to third place in terms of new voluntary sales, while New York was fourth. The top 15 results were similar to those in the 2010 and 2011 reports except for the addition of Kentucky and South Carolina. Both Maryland and Massachusetts were dropped from the most recent list.
“This information is definitely important to know when developing distribution and marketing strategies, but carriers need to be careful assuming that those states with the greatest sales—like Texas, Florida, California, and New York—may be overly saturated and afford less opportunity for future voluntary sales,” says Gil Lowerre, Eastbridge president. “To the contrary, some of these states actually have the greatest untapped potential for voluntary after comparing the sales reported by the carriers to the employed population of a given state—those individuals who have the ability to purchase voluntary insurance at the worksite,” adds Lowerre.
Eastbridge calculates an ESI (Eastbridge Sales Index) for each state that gives a truer picture of the sales penetration for that state. “As an example, for 2012 (and in 2011), California and New York are in the highest sales category (third and fourth respectively), but in much lower ESI categories, indicating that there is untapped potential in those states and not the saturation that some carriers may perceive,” explains Bonnie Brazzell, vice president at Eastbridge. “Conversely, Delaware, Arkansas, Kentucky, and Tennessee had the highest ESIs or strong sales coverage, yet two of these states were not included in the top 15 in terms of sales premium,” adds Brazzell. “So even though these states had lower sales, their voluntary sales saturation is higher and future sales opportunity lower.”
In addition to estimating each state’s ESI, Eastbridge also measures its EPI, or Eastbridge Premium Index. EPI measures the real penetration by looking at the inforce premium per employed person, which, when combined with the ESI numbers, changes the way carriers can look at coverage, penetration, and therefore, the opportunity for voluntary expansion. This information is important for all companies working to plan their distribution, expansion, and marketing campaigns. The U.S. State ESI and EPI Data report is an adjunct to Eastbridge’s annual U.S. Worksite/Voluntary Sales Report© and includes sales and inforce data by state, as reported by the survey participants.
The report is free but available only to survey participants. For more information on becoming a participant in the next annual survey, contact the company at email@example.com or call (860) 676-9633.
This report is free and available exclusively to Eastbridge Information Partner™ Subscribers as well as to participants. For more information on becoming a participant, email us at firstname.lastname@example.org.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.