Benefit brokers, career agents and voluntary brokers take the largest share of voluntary/worksite sales.
August, 20, 2019 | By Bonnie Brazzell and Nick Rockwell – BenefitsPro.com
This is the last in our series of columns on the voluntary industry sales results for 2018. This column takes a closer look at sales by the following distribution segments:
Career agents—These producers work primarily for a single company and sell that company’s voluntary/worksite products. Aflac and Colonial reps are examples of career agents.
Classic worksite brokers—These producers focus primarily on voluntary sales. Their operations may be small or medium sized, and they typically sell directly to employers and may offer support services to their clients.
Worksite specialists—This segment consists of large marketing organizations whose primary focus is voluntary sales. Benefits communications is a key service offered by this group. Most specialists work on cases brought to them by other brokers who need their expertise in voluntary.
Benefit brokers—These producers typically focus on employee benefits, particularly traditional group benefits. Some are actually benefits agencies inside of a commercial lines agency. For all, voluntary products are generally offered as an additional line.
Occasional worksite producers—These producers are insurance generalists. They have a small agency that sells insurance products other than voluntary/worksite—group, individual or property/casualty. Worksite products are a small part of their operation.
The benefit broker segment continued to take the largest share of voluntary/worksite sales at 59 percent; the segment accounted for almost $5 billion in sales. Career agents continued to have the second highest share, at around $1.5 billion. Voluntary brokers (classics and worksite specialists) accounted for about $1.9 billion.