Takeovers and the Voluntary Market

Cost: $2,000; published 2017

Although prevalent in the group market for years, takeovers in the voluntary/worksite market are a newer phenomenon, increasing in size and importance, and continue to be a hot topic for carriers. According to Eastbridge’s U.S. Voluntary/Worksite Sales Report, takeovers accounted for 54 percent of new business annualized premium (NBAP) in 2016, which is a significant increase from the 12 percent in 2006 (the first year tracked). Despite the year-over-year increase, there seems to have been some stabilization of takeover sales, with only one to two point per-year increases noted in the last five 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 the 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
  • 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. Special 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. Differences in Takeover Levels by Case Size

D. Takeovers vs. “Virgin” Sales by Product for 2016

E. Strategy for Reduction of Takeovers

F. Future Concerns about Takeovers

5. Respondent Demographics

A. Voluntary Platform

B. Voluntary/Worksite 2016 NBAP



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