Growing numbers of carriers prefer and encourage takeovers
An increasingly competitive marketplace and greater broker willingness to move business are driving voluntary carriers to expect continued growth in takeover business, according to new Eastbridge Consulting Group research.
The Takeovers and the Voluntary Market Spotlight™ Report shows takeover volume has levelled off in recent years, but 90% of carriers surveyed say they expect it to continue to increase in the next three to five years.
“About half of carriers say they don’t encourage takeovers, but the number that do has more than doubled in the past four years,” said Bonnie Brazzell, Eastbridge special advisor, consulting and research. “Carriers also show signs of shifting from preferring new business to preferring takeover accounts, although the largest number indicate they have no preference.”
The Takeovers and the Voluntary Market Spotlight™ Report compiles data collected from 30 voluntary carriers in July and August 2023. The report examines the takeover trends and practices of voluntary/worksite carriers, including business approach, percentages by product and case size, differences by case size and commission type, typical business duration before a takeover, strategies for reducing takeovers and future concerns.
Other key findings in the report include:
Takeovers and the Voluntary Market, a Spotlight™ Report
About Eastbridge Consulting Group — is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn.