In Practice June 19, 2007
Benefit Brokers Lead Sales of Voluntary Benefits
Benefit brokers accounted for almost half (46%) of worksite sales of voluntary benefits in 2006, according to Eastbridge Consulting Group’s eighth annual U.S. Worksite Sales Study.
Reported by Rebecca Moore
Career Agents came in second with 29% of worksite sales in 2006, and had the greatest increase in new sales at 20%, according to an Eastbridge press release. The Benefit Broker segment saw close to a 10% increase.
“The market has changed and is no longer dominated by those brokers that focus only on worksite/voluntary sales,” said Gil Lowerre, Eastbridge president, in the release. Pointing out that brokers whose primary business is selling products other than voluntary to employers are writing more and more voluntary business, Lowerre added: “These brokers are important and fast growing players in the voluntary arena, regularly offering voluntary as an add-on to the sales of employer-funded coverages. While most start out selling voluntary versions of the employer-funded plans, we see as they gain experience, they’re beginning to experiment with different products, enrollment methods, and platforms in this market.”
As for other segments, the Classic Worksite Broker segment accounted for 12% of sales in 2006, while Specialists accounted for just 8%.
The U.S. Worksite Sales Study includes detailed information on 61 carriers. All participating insurance carriers receive a free copy of the study’s findings, including company-specific results.
For information about participating in next year’s study, send an email to info@eastbridge.com or call (860) 676-9633.