Voluntary sales highest in employers with 2,500+ employees; yet, potential for future growth remains, according to an Eastbridge report on state-by-state results

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Jul 22, 2021, 09:00 ET

AVON, Conn., July 22, 2021 /PRNewswire/ -- According to Eastbridge Consulting Group's U.S. State ESI and EPI Data for 2020 report, the employer segment with greater than 2,500 employees had the highest volume of 2020 voluntary sales at 34%, the same percentage as 2018 but down slightly compared to last year.

Voluntary Sales by Employer Size

Employer Size Segment	Mix of Sales
<10 employees	7%
10-25 employees	7%
26-99 employees	13%
100-499 employees	18%
500-999 employees	10%
1,000-2,500 employees	11%
>2,500 employees	34%

However, this segment is one of the least penetrated, indicating future sales potential remains. The Eastbridge Sales Index (ESI), which divides the employee population for each employer size by the sales for each employer size, was developed to provide a useful metric to assess penetration. Relatively speaking, a lower ESI indicates more opportunity for future sales, while a higher ESI indicates less opportunity for future sales. This additional metric allows for a more complete picture of sales opportunity rather than looking at total sales alone.

For 2020, the 500 to 999 segment and the 1,000 to 2,500 segment have the highest ESIs, indicating good penetration.  The lowest ESIs continue to be in the smallest employer segments (under 10 lives, 10 to 25 lives) where many carriers and brokers choose not to write or market. Nonetheless, these segments present future sales opportunities by the nature of their low levels of penetration.  Of note is the overall industry decline in 2020 sales; effects of the pandemic caused the ESI to lower across all segments.

Employer Size Segment	ESI
<10 employees	40
10-25 employees	46
26-99 employees	51
100-499 employees	72
500-999 employees	109
1,000-2,500 employees	88
>2,500 employees	48

This annual report includes state-by-state sales and inforce data and provides two measures that relate these data to the number of employed Americans in each state. The ESI (Eastbridge Sales Index) and EPI (Eastbridge Premium Index) provide real sales coverage (ESI) and penetration (EPI) measures on a state level. In addition, the report provides information on sales by employer size and inforce premium by line of business. This information provides a useful perspective for carriers to look at real sales coverage and penetration and, therefore, the opportunity for voluntary growth. 

The U.S. State ESI and EPI Data report is an adjunct to Eastbridge's annual  U.S. Voluntary/Worksite Sales Report and includes sales and inforce data by state, as reported by the survey participants. The report is free but available only to survey participants. For more information on becoming a participant in the next annual survey, contact the company at [email protected] or call (860) 676-9633. 

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada.

FOR FURTHER INFORMATION, CONTACT:
Erin Marino ([email protected])

SOURCE Eastbridge Consulting Group