Takeover sales now account for almost 41 percent of new voluntary sales premium reported in 2010, according to the most recent U.S. Worksite Sales Report from Eastbridge Consulting Group.

Takeovers—where one carrier's plan is replaced with a similar plan issued by a different insurance carrier—have increased excessively over the past five years, going from 12 percent in 2006 to 41 percent last year.

While this past year saw a less steep increase, just up from 38 percent in 2009, Eastbridge President Gil Lowerre says the trend will continue. However, the level of takeover activity is far below the traditional group business.

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"There is still a lot of virgin business in the market, and many employers continue to be open to adding more types of voluntary products," Lowerre says.

"We know that group companies face this issue more frequently than do companies offering only individual platform voluntary plans," says Eastbridge Vice President Bonnie Brazzell. "But both are seeing increased activity. The rate of takeovers depends, too, on the product lines offered. Some group companies report that 80 percent of their business is takeover. Individual companies report percentages averaging 5 percent to 20 percent, depending on whether their portfolio is primarily permanent life insurance or a full traditional portfolio."

The U.S. Worksite Sales Report is an annual report conducted by Eastbridge. The 2010 report includes detailed data on the performance of 64 worksite marketing carriers, both group and individual.

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