By Warren S. Hersch
Sales of voluntary insurance products rose in 2011 to $5.5 billion in premium, fueled chiefly by the largest producer channel, benefit brokers, according to a new report.
Eastbridge Consulting Group Inc., Avon, Conn., disclosed this finding in its 2011 U.S. Worksite/Voluntary Sales Report. The study estimates sales for the entire voluntary industry
, with detailed data on the performance of more than 60 worksite marketing carriers, both group (voluntary) and individual (worksite) carriers/products.
The benefit broker channel generated about $3 billion in new sales, an 11% increase over 2010 sales. The benefit broker’s share of voluntary sales now stands at 55%, up from 52% last year.
The report adds the benefit broker channel was the only segment that enjoyed a sales increase over 2010 results; all other channels were slightly down.
The career agent channel had $1.2 billion in sales, down 2.9% from 2010. The classics broker and worksite specialist channels yielded $0.78 billion (down 2.2%) and $0.44 billion (off 1.49%) in sales, respectively.
“Occasional” distributors of voluntary products
produced $0.84 billion in premium, a 2.5% decline from 2010.
|Segment||2011 Sales (in billions)||Increase over Dec 2010|
| Benefit Brokers||$ 3.028||10.9%|
| Career Agents||$ 1.149||-2.9%|
| Classic Worksite Brokers||$ .777||-2.2%|
| Worksite Specialist||$ .440||-1.9%|
| Occasional||$ .084||-2.5%|
Originally published on LifeHealthPro.com