Both small and large employers offer opportunity for additional voluntary sales, finds Eastbridge’s latest report

AVON, CONNECTICUT, USA (September 1, 2020)

According to Eastbridge Consulting Group’s  U.S. State ESI and EPI Data for 2019  report,  both small employers with less than 100 employees and large employers with over 2,500 employees have the lowest levels of voluntary sales penetration. On the other hand, the 500-999 segment followed closely by the 1,000 to 2,500 segment  have the highest levels of voluntary sales penetration.

To assess penetration, Eastbridge developed the Eastbridge Sales Index (ESI), which divides the employee population for each employer size by the sales for each employer size. The lower the ESI the more opportunity for future sales, and the higher the ESI the less opportunity for future sales. The ESI metric adds another dimension to assess future sales potential in addition to looking at total sales.

Employer Size Segment

ESI

  <10 employees 

43

  10-25 employees 

58

  26-99 employees 

65

  100-499 employees 

85

  500-999 employees 

106

  1,000-2,500 employees 

101

  >2,500 employees 

62

From a total sales perspective, the employer segment with greater than 2,500 employees had the highest volume of 2019 voluntary sales at 37%, up three percentage points compared to last year. The 25-99 employee segment and 100-499 employee segment had the next highest volume at 31% collectively.

Voluntary Sales by Employer Size

Mix for 2018

Mix for 2019

Projected 2019 Sales (in millions)

U.S. Employees

  <10 employees

9%

6%

$538

10%

  10-24 employees

8%

8%

$665

9%

  25-99 employees

14%

14%

$1,199

14%

  100-499 employees

18%

17%

$1,540

14%

  500-999 employees

7%

8%

$739

5%

  1,000-2,499 employees

10%

10%

$914

7%

  >2,500 employees

34%

37%

$3,238

40%

This  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  in force  premium by line of business. This information provides a useful perspective for carriers to look at real sales coverage and penetration and, therefore, the opportunity for voluntary growth. 

The  U.S. State ESI and EPI Data report is an adjunct to Eastbridge’s annual U.S. Voluntary/Worksite 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 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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