Latest Eastbridge research reveals expected growth in voluntary takeover business

Growing numbers of carriers prefer and encourage takeovers

AVON, Conn., Oct. 26, 2023 /PRNewswire/ -- An increasingly competitive marketplace and greater broker willingness to move business are driving voluntary carriers to expect continued growth in takeover business, according to new Eastbridge Consulting Group research.

The "Takeovers and the Voluntary Market" Spotlight™ Report shows takeover volume has levelled off in recent years, but 90% of carriers surveyed say they expect it to continue to increase in the next three to five years.

"About half of carriers say they don't encourage takeovers, but the number that do has more than doubled in the past four years," said Bonnie Brazzell, Eastbridge special advisor, consulting and research. "Carriers also show signs of shifting from preferring new business to preferring takeover accounts, although the largest number indicate they have no preference."

The "Takeovers and the Voluntary Market" Spotlight™ Report compiles data collected from 30 voluntary carriers in July and August 2023. The report examines the takeover trends and practices of voluntary/worksite carriers, including business approach, percentages by product and case size, differences by case size and commission type, typical business duration before a takeover, strategies for reducing takeovers and future concerns.

Other key findings in the report include:

• About half of carriers indicate they can match or lower the rates for a takeover, but matching rates is less common than matching benefits.
• More than half of carriers surveyed say they don't usually reduce or modify commissions for takeovers, but many report they may do so based on case specifics or the product involved.
• Takeover rates are significantly higher for larger accounts than smaller groups, mostly due to more broker attention in the large-case market and the greater likelihood of voluntary benefits in these groups.

For more information about the "Takeovers and the Voluntary Market" Spotlight™ Report and how to obtain a copy, visit Eastbridge's website, email [email protected] or call (860) 676-9633. 

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
EMAIL:  [email protected]

SOURCE Eastbridge Consulting Group