Once again this year, Texas and Florida led the country in voluntary sales for 2013, according to Eastbridge Consulting Group’s fourth annual U.S. State ESI and EPI Data report. California, New York and Georgia rounded out the top five states.
“This year the top 10 states were the same as they were in 2012,” says Gil Lowerre, president of Eastbridge. There were some changes in numbers 11 through 15, however. “Overall, the top 15 states accounted for almost 70 percent of the total voluntary sales in 2013,” adds Lowerre.
“When we look at the ESI (Eastbridge Sales Index), we see a different top 5 list,” says Bonnie Brazzell, vice president at Eastbridge. “The ESI actually gives a truer picture of the sales penetration for that state,” adds Lowerre. The ESI is calculated by dividing the sales in the state by the employed population.
The states with the highest ESI (indicating higher penetration) include:
“The ESI is important to know when developing distribution and marketing strategies,” says Lowerre. “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,” adds Lowerre.
“On the other hand Arkansas, Louisiana, Delaware, and Tennessee had high ESIs, indicating strong sales coverage, yet were not included in the top 5 in terms of sales premium,” explains 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. The states with the highest EPI are similar to the highest ESI:
This information is important for all companies as they 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
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.