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Also in this issue:

• Cover
• A misleading report card
  by Gil Lowerre
• Worksite executives speak out on their top concerns and the future of the market
  by Bonnie Brazzell
• What’s in a name?
• Groupification continues
• Sales are accelerating... again
• Don’t miss our new employee study
• Groupification and core benefit carriers
• The next wave is on its way
• Enrollment satisfaction doesn’t satisfy
• The boomers are staying at work

Past Issues

• 2007
• 2006

Spring 2007 / No. 71

Sales are accelerating… again

For the prior three years (2002 through 2005), industry voluntary sales have increased an average of 2.7 percent a year. While better than many segments of the insurance industry, that pace was well off of the pre-2002 growth rates. Some observers announced that voluntary sales were flattening and that the strong growth years were over. But that slower growth was clearly attributable to a few large companies. For example, Aflac’s sales growth, often 20 percent or higher in earlier years, slowed to single digits during this period of slower growth. And considering that Aflac has almost a 30 percent market share, its slowing or quickening growth has had a tremendous impact on the rest of the industry’s overall numbers. In 2006, Aflac returned to very positive growth (not 20%, but not 5% either). And the industry as a whole has jumped up in overall sales growth. Seven of the nine largest sellers experienced double-digit sales growth in 2006. Overall, sales growth has rebounded to the historical mean for the entire survey period.

Details on industry sales, by carrier and by product, are included in Eastbridge's annual U.S. Worksite Sale Report. The report is only available to participants. So if you have not responded, call us today to participate and receive your copy of the report.