Latest Eastbridge study shows growing presence of general agents in voluntary benefit market

AVON, CONNECTICUT, USA (October 1, 2024)

Nearly all voluntary carriers staff field positions with employees rather than independent contractors

General agents are quickly becoming a significant component of the voluntary benefits industry, according to a new report from Eastbridge Consulting Group.

Eastbridge’s Field Structure and Distribution of Voluntary Carriers Spotlight™ Report shows more than three-quarters of voluntary carriers surveyed partner with general agents, up from about one-half just a few years ago. A general agent is defined as a “broker’s broker” who recruits, trains and supports brokers while promoting the carrier’s product portfolio. More carriers also are outlining specific requirements for general agents’ performance: 74% in this year’s study, compared to just 46% in 2021.

“Excellent products, administration and customer service are all essential for carriers to succeed in the voluntary market, but they’re only effective if a carrier’s distribution system can support and deliver those products and services,” said Nick Rockwell, Eastbridge president. “More carriers appear to be tapping into the expertise of general agents to enhance their distribution systems.”

Eastbridge’s Field Structure and Distribution of Voluntary Carriers Spotlight™ Report compiles data collected in June and July 2024 from 25 voluntary carriers. The report examines the structures and positions voluntary carriers use for distribution, sales support, enrollment and ongoing service. Carriers can use this information to compare their own distribution systems to other voluntary carriers and identify opportunities to increase their competitiveness in the market.

Other key findings in the report include:

• Most field positions in today’s market are staffed by company employees rather than independent contractors. Only two carriers use independent contractors, both in sales positions.
• The most common services carriers offer brokers are local assistance with closing a case, online commission statements and forms, and online seminars.
• The majority of carriers designate a staff member to work directly with centers of excellence in large brokerage firms.