Brokers are selling more voluntary but use of private exchanges and defined contribution approaches is limited according to Eastbridge

AVON, CONNECTICUT, USA (August 5, 2014)

Most brokers claim that the Affordable Care Act has caused them to sell more voluntary, according to the results of a joint survey between Benefits Selling and Eastbridge Consulting Group. In fact, 60% of the brokers surveyed sell more voluntary today and 18% say they are selling “significantly more.” 

The study results are published in the Brokers and Voluntary Benefits—2014 Spotlight™ Report recently released by Eastbridge. The report also reveals that, despite the aggressive promotion of private exchanges (PEX) and defined contribution (DC) strategies, brokers are not rushing their clients to use these approaches. The majority of brokers suggest a PEX less than 5% of the time, and large-case brokers are more likely to recommend PEXs than are smaller-case brokers. The success with which private exchanges are actually implemented in a case is also low, even among the large-case brokers. When private exchanges are recommended, defined contribution is often not included. In fact, a majority said that DC is included less than 25% of the time. Again, among large case brokers, DC plans seem to be more prevalent. While adoption of PEXs and DC plans may be just a matter of time, the report suggests that time is not now.

In addition to data on the use of PEXs and DC plans, the report explores:

  • Brokers’ current focus on voluntary (NBAP, new group growth, cross sales with voluntary)
  • Most commonly sold voluntary products by the brokers today and expectations for the future
  • Voluntary carriers used by the brokers most frequently and why
  • Enrollment methodologies used most often today and the party responsible for selecting the method used for each enrollment

The cost of the report is $1,500. To purchase, call (860) 676-9633 or email info@eastbridge.com.

Report Summary

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


 

Press Release Index