For the broker, takeover opportunities fulfill part of their value proposition of seeking a better deal. This could be reflected in enhanced benefits, lower costs, improved plan designs, better service in such key areas as implementation, billing and claims, or all of the above. They also can be part of an overall strategy of product management for the employer and participating employees. Brokers have been finding improved life, disability and dental plans for years, and many are familiar with these products. But they aren't as familiar with products like accident, critical illness and hospital indemnity, which seem to be the “big three” of new, additional voluntary plans. 

Carriers often see takeover sales as a way to gain a quick start in a new or growing market segment. In fact, the trend toward voluntary takeover sales reflects momentum toward delivering better products backed by better services at more favorable price points. Employee engagement is increasing as enrollment communication meetings and support tools become better. In the end, trade-ins often are a good idea in the benefits business. Product features, pricing and underwriting updates make it likely that older products need to be reviewed. But brokers and carriers need to carefully review the pluses and minuses of a replacement transaction to make sure they are delivering the best answer.