Eastbridge study shows benefit brokers lead growth in voluntary market

AVON, CONNECTICUT, USA (June 8, 2023)

Benefit brokers dominate market with two-thirds of voluntary sales.

Benefit brokers continued to build their share of the voluntary benefits market in 2022, according to Eastbridge Consulting Group’s most recent 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 voluntary sales 7% last year. The distribution segment’s sales totaled $5.9 billion, accounting for more than two-thirds of the overall market.

Career agents, who primarily work for a single company selling its products, also saw significant sales growth last year of 7%. The segment’s increase to $1.1 billion in total sales was a strong bounce-back from a 4% decline the previous year. Career agents continue to hold the second-highest share of the market at 12%.

Classic worksite brokers who focus on voluntary saw sales drop 1% in 2022 to $850 million, while sales for worksite specialists — large marketing organizations that focus on voluntary sales — increased slightly last year to $788 million. Classic brokers hold 10% of the total market and worksite specialists hold 9%.

 

 

Eastbridge’s U.S. Voluntary/Worksite Sales Report provides the industry’s most comprehensive, reliable and current source of data on voluntary/worksite sales and in-force premium. The new report includes information from 63 companies, primarily on group and individual life and health products.

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.