Eastbridge report looks at 2013 voluntary sales by employer size

AVON, CONNECTICUT, USA (June 4, 2015)

According to Eastbridge Consulting Group’s U.S. State ESI and EPI Data for 2014 report, the employer segment with over 2,500 employees increased its share of voluntary sales from 36 percent in 2013 to 40 percent in 2014. The share of sales is almost identical to the segment’s share of U. S. employees as indicated in the chart below.

2014 Voluntary Sales by Employer Size

 

Mix for 2014

Mix for 2013

U.S. Employees

<10 employees

4%

4%

11%

10–25 employees

6%

7%

11%

26–99 employees

12%

12%

13%

100–499 employees

19%

17%

14%

500–999 employees

10%

11%

5%

1,000–2,500 employees

11%

13%

7%

>2,500 employees

40%

36%

39%


“However, having the highest percentage of sales is a bit misleading if you are looking at whether the segment is saturated or underpenetrated,” say Gil Lowerre, president, Eastbridge. “If you look at the ESI (sales divided by the employee population) for each employer size, you can better tell which segments are indeed well penetrated or underpenetrated,” adds Lowerre.

The least penetrated segments continue to be the two smallest ones—under 10 lives and 10 to 25 lives. “This is largely due to the fact that many carriers and/or brokers do not focus on small cases,” explains Bonnie Brazzell, Eastbridge vice president. The segment that has the highest penetration and ESI continues to be the upper end of what many call the middle market, specifically those employers with between 500 and 999 employees. “The 2,500 or more employee segment, despite having the highest sales, has a relatively low ESI,” adds Brazzell, “so there is still potential in the segment.”

Mix for 2014

ESI

<10 employees

21

10–25 employees

30

26–99 employees

59

100–499 employees

79

500–999 employees

105

1,000–2,500 employees

87

>2,500 employees

60


This fifth annual report includes state-by-state sales and inforce data and provides two measures that relate these data to the number of employed Americans in each state. The ESI (Eastbridge Sales Index) and EPI (Eastbridge Premium Index) provide real sales coverage (ESI) and penetration (EPI) measures on a state level. In addition, the report provides information on sales by employer size and inforce premium by line of business. This information changes the way carriers can look at real sales coverage and penetration and, therefore, the opportunity for voluntary expansion.

The report is an adjunct to Eastbridge’s annual U.S. Voluntary/Worksite Sales Report and is free but available only to carriers that provide their state sales data as a part of the survey. For more information on becoming a participant in the 2015 survey, e-mail us 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.


 

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