Eastbridge study shows benefit brokers lead growth in voluntary market

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Jun 08, 2023, 08:00 ET

Benefit brokers dominate market with two-thirds of voluntary sales

AVON, Conn., June 8, 2023 /PRNewswire/ -- Benefit brokers continued to build their share of the voluntary benefits market in 2022, according to Eastbridge Consulting Group's most recent research.

Eastbridge's "U.S. Voluntary/Worksite Sales Report" shows benefit brokers — those who primarily sell core or employer-funded products but also sell voluntary — increased their voluntary sales 7% last year. The distribution segment's sales totaled $5.9 billion, accounting for more than two-thirds of the overall market.

Career agents, who primarily work for a single company selling its products, also saw significant sales growth last year of 7%. The segment's increase to $1.1 billion in total sales was a strong bounce-back from a 4% decline the previous year. Career agents continue to hold the second-highest share of the market at 12%.

Classic worksite brokers who focus on voluntary saw sales drop 0.9% in 2022 to $850 million, while sales for worksite specialists — large marketing organizations that focus on voluntary sales — increased slightly last year to $788 million. Classic brokers hold 10% of the total market and worksite specialists hold 9%.

2022 Sales Mix by Distribution Segment

Segment	2022 Sales	Change Over 2021	Market Share
Employee Benefit Brokers	$5,930 million	+ 7 %	68 %
Career Agents	$1,094 million	+ 7 %	12 %
Classic Worksite Brokers	$850 million	- 1 %	10 %
Worksite Specialists	$788 million	+ 1 %	9 %

Eastbridge's "U.S. Voluntary/Worksite Sales Report" provides the industry's most comprehensive, reliable and current source of data on voluntary/worksite sales and in-force premium. The new report includes information from 63 companies, primarily on group and individual life and health products.

All participants in the study receive a free copy of the complete findings, including company-specific results. Carriers interested in participating in next year's study can email Eastbridge at [email protected].

About Eastbridge Consulting Group

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn at https://www.linkedin.com/company/eastbridge-consulting-group.