Takeovers and the Voluntary Market

Cost: $2,500; published 2020

As takeovers in the voluntary/worksite market continue to become more commonplace, carriers must account for this practice in their overall business acquisition and retention strategies. Fifty-six percent of new business annualized premium was reported as takeover premium in 2018, according to Eastbridge’s U.S. Voluntary/Worksite Sales Report. While this represents a significant increase in takeovers from 12% in 2006 (the first year this data was tracked), there has been a stabilization trend in takeover sales over the last few years, with much smaller per-year increases noted than in previous years.

The objective of the Takeovers and the Voluntary Market Spotlight™ Report is to provide comparative data on takeover business as well as takeover trends and practices of voluntary/worksite carriers. Some of the topics covered in the study include:

  • Changes in takeover business volume in the last three years
  • Anticipated takeover volume in the next three to five years
  • Takeover business approach and preferences
  • Detailed takeover practices by carrier
  • Takeover percentages by product
  • Differences in takeover levels by case size and commission type
  • Typical case duration before takeover
  • Carrier strategies for reduction of takeovers
  • Future trends and concerns about takeover business

View Table of Contents

1. Executive Summary

A. Study Objectives

B. Key Findings

C. Methodology

2. Takeover Trends & Carrier Approach

A. Recent Takeover Business Volume

B. Future Takeover Business Volume

C. Takeover Business Approach

1. Company Attitude towards Takeovers

2. Case-Type Preference

3. Takeover Practices by Carrier

A. Matching Benefits on Takeovers

B. Special Products for Takeover Situations

C. Matching Rates for Takeovers

D. Specific Underwriting Requirements

E. Guaranteed Issue Offer and Buy-up Opportunities

F. Claims Experience for Takeovers

G. Verification of Prior Coverage for Takeovers

H. Waiver of Pre-Existing

I. Takeover Commissions

J. Loss Ratio Differences

K. Persistency/Retention Differences

L. Other Takeover Rules or Practices


4. Takeover Results and Concerns

A. Overall Voluntary Takeover Percentage

B. Percent of Takeovers by Product

C. Takeover vs. “Virgin” Sales by Product for 2018

D. Differences in Takeover Levels by Case Size

E. Typical Duration for Group Before Takeover

F. Takeover Rates by Commission Type

G. Strategy for Reduction of Takeovers

H. Future Concerns about Takeovers

5. Respondent Demographics

A. Voluntary Platform

B. Voluntary/Worksite 2018 NBAP



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For more information, please contact us at [email protected] or (860) 676-9633.



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