Eastbridge’s U.S. Worksite/Voluntary Sales Report finds takeover sales increased again in 2012.

AVON, CONNECTICUT, USA (June 10, 2014)

Based on the most recent U.S. Worksite/Voluntary Sales Report, takeover sales (where one carrier’s plan is replaced with a similar plan issued by a different insurance carrier) now account for half of the new voluntary sales premium reported in 2013, up from 45% in 2012. 

“After slowing some several years ago, takeovers have increased again, and the level of increase in 2013 was even more than in 2012,” says Gil Lowerre, president of Eastbridge. “The movement since we began tracking takeover business in 2006 has been significant.” adds Lowerre.  

The following chart shows the takeover rates since 2006.

Takeovers as Percent of NBAP

Percent of NBAP
















“The increase in takeovers comes as more group companies begin focusing on and selling more voluntary products. Many group carriers report that their non-medical voluntary sales are now nearly equal to their traditional non-medical sales,” says Bonnie Brazzell, vice president of Eastbridge. 
“Another reason for the increase is that Benefit Brokers are responsible for a higher percentage of the voluntary sales (57% of all voluntary in 2013),” according to Lowerre. “The fact remains that too many brokers do not recognize all the opportunities for virgin sales in the voluntary market,” adds Lowerre. Virgin business includes:

  • Accounts that do not currently offer voluntary
  • Employees who have not yet purchased coverage in accounts where voluntary is offered
  • New lines of coverage sold to any employee in an existing account

The following chart shows the opportunities within the market.

Employee Penetration and Potential


Percent of Employees
Number of Employees

Current customers


43 million

Potential customers in accounts without voluntary


26 million

Potential new customers in accounts with voluntary


45 million


In addition to reaching the 71 million employees who have no voluntary today, there is opportunity for selling other voluntary products to the 43 million who already own at least one. Among employees owning voluntary, the percentage of employees who own just one voluntary product has declined over the last decade. Today, only 15% of the voluntary product owners have just one product. “The bottom line for brokers and carriers is that you do not have to be satisfied with just replacing an existing plan,” adds Lowerre. “There is tremendous opportunity for new premium dollars in the market.”

The U.S. Worksite/Voluntary Sales Report is an annual report conducted by Eastbridge. The 2013 report includes detailed data on the performance of more than 60 voluntary and worksite carriers, both group and individual. The report is only available to participating carriers. For more information on participating in next year’s survey, contact Eastbridge at info@eastbridge.com or call (860) 676-9633.

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.



Press Release Index