Eastbridge study shows benefit brokers continue to dominate voluntary market

AVON, CONNECTICUT, USA (June 25, 2024)

Sales for most broker categories exceed overall industry rate

Benefit brokers continue to take the largest share of voluntary/worksite sales with more than two-thirds of the market, according to Eastbridge Consulting Group’s newest research. Eastbridge’s U.S. Voluntary/Worksite Sales Report shows benefit brokers — those who primarily sell core or employer-funded products but also sell voluntary — increased their sales by 7% in 2023 to $6.3 billion, or 68% of the total market.

Career agents, who primarily work for a single company selling its products, and classic worksite brokers who focus on voluntary sales both saw sales growth of 11% in 2023. Career agents account for 13% of the market while worksite brokers hold 10%. Worksite specialists — large marketing organizations that focus on voluntary sales — had a slight dip of 0.2% in sales and make up 8% of the market.

2023 Sales Growth and Market Share by Distribution Segment

Distribution Segment	Sales Growth	Market Share
Benefit brokers	7%	68%
Career agents	11%	13%
Classic worksite brokers	11%	10%
Worksite specialists	-0.2%	8%

 

Total voluntary insurance sales hit a historic high for new premium at $9.34 billion, a 6.7% increase over 2022, the report shows.