A report from Eastbridge Consulting Group finds voluntary/worksite sales appear to be weathering the recession. Last year's sales increased 3.3 percent, according to Eastbridge's U.S. Worksite Sales Report. Total 2009 voluntary sales are estimated at $5.397 billion, up from $5.225 billion in 2008.
"We are again pleased to see the industry growing despite the recession," said Gil Lowerre, president of Eastbridge, in a released statement. "With an increase of 3.3 percent this past year and almost a 4 percent increase in 2008, it looks like the industry has once again shown itself to be pretty resilient."
Among the top 15 companies in the market, the average increase was 3.1 percent, according to the report. Ten of the top 15 companies had sales increases, with five of these companies having double-digit increases ranging from 14 percent to 34 percent.
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Inforce premiums also increased just under 8 percent in 2009 (down from 10 percent in 2008). Based on tracked premium and estimates of the total market, the 2009 inforce worksite premium is estimated to be between $18.8 billion and $24.7 billion.
Bonnie Brazzell, vice president of Eastbridge, says she wouldn't exactly call the industry recession-proof, "but, historically, there have been factors other than the economy that seem to have more impact on voluntary sales. We have seen this once again. Broker attitudes as well as employee interest in voluntary products both have much more impact on our results as an industry."
The U.S. Worksite Sales Report estimates sales for the entire voluntary industry with detailed data on the performance of 60 voluntary carriers, both group (voluntary) and individual (worksite) carriers/products. Eastbridge estimates that these companies account for over 90 percent of the total worksite sales volume for 2009–and represent the largest number of carriers included in any sales report for the industry.
Parties interested in participating in next year's study are advised to e-mail Eastbridge at [email protected]. All participants receive a free copy of the complete findings, including company-specific results.
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