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.
CONTACT: |
Ginger Bates |
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SOURCE Eastbridge Consulting Group
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