Eastbridge’s U.S. Voluntary/Worksite Sales Report finds takeover sales increased again in 2015.

AVON, CONNECTICUT, USA (June 28, 2016)

Based on the most recent U.S. Voluntary/Worksite Sales Report, takeover sales (where one carrier’s plan is replaced with a similar plan issued by a different insurance carrier) now account for 53 percent of new voluntary sales premium, up from 51 percent in 2014.

The following chart shows the takeover rates since 2006.

Takeovers as Percent of NBAP

Year Percent of NBAP

2015

53%

2014

51%

2013

50%

2012

45%

2011

42%

2010

41%

2009

38%

2008

29%

2007

17%

2006

12%


The increase in takeovers is largely a result of the increase in voluntary sales by Benefit Brokers. These brokers were responsible for 60 percent of all voluntary sales in 2015.  Replacing another carrier’s plan with one offering better benefits or lower premiums is standard in the traditional group business, and Benefit Brokers have brought that sales approach to the voluntary business. Carriers do not see the percentage of takeovers decreasing. In another recent Eastbridge survey, 76 percent of carriers expect the volume of takeover business to continue to increase and 14 percent expect a significant increase.

The U.S. Voluntary/Worksite Sales Report is an annual report conducted by Eastbridge. The 2015 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.


 

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