AVON, CONNECTICUT, USA (July 8, 2004)�For some time, Eastbridge Consulting has been reporting that the employee benefit broker segment is experiencing the fastest growth of all voluntary producer segments and is the segment that has the greatest market share of new sales. We have also been “predicting” the blending of the traditional group, worksite, and even pension distribution channels into a new breed of broker�the Benefits Advisor. The company’s latest study, Worksite Distributors 2004: The Evolution to Benefits Advisor, supports each of these trends.
The study found that almost all worksite and employee benefit brokers offer their clients multiple lines of business. Most of the respondents offer traditional group benefits, voluntary benefits, individual life and health products, and executive benefits. Many described themselves as offering a “total benefits solution”�a clear move towards the independent Benefits Advisor role.
The study also found that almost all employee benefit brokers offer voluntary benefits and that, overall, there has been a significant increase in the percentage offering voluntary. In a 2001 study Eastbridge study, 70 percent of employee benefit brokers sold voluntary products whereas, in this survey, the percent has gone up to over 90 percent.
Additionally, almost all of the brokers surveyed believe that they will experience growth in their voluntary business line in the future. Worksite-focused brokers expect the business to “increase significantly” while employee benefit brokers claim it will just “increase.”
Worksite Distributors 2004: The Evolution to Benefits Advisor surveyed over 500 brokers earlier this year. The study looked at who is selling worksite today as well as:
- What products/services these producers sell
- How much worksite they sell
- How often they sell worksite
- What carriers the producers use most often-and why
- What they expect from carriers
- Their satisfaction level with their present carriers
- How a carrier can get a greater share of their business
The report is currently available for sale for $2,500. Using the information from the study, carriers can evaluate if their offering is keeping pace with the needs of their targeted producers or if changes are needed. For more information, email the company at [email protected] or call (860) 676-9633.
Eastbridge Consulting Group, Inc., is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.