June 12, 2017 | By Phil Albinus | Employee Benefit Adviser
The percentage of employee benefit brokers selling voluntary grew nearly 12% in 2016 compared to the previous year with the segment now owning 62% of the market, according to Eastbridge Consulting Group. Last year, voluntary sales reached $7.63 billion with $4.75 billion being generated by benefit brokers, the voluntary benefit consulting firms U.S. Voluntary/Worksite Sales Report found. Gil Lowerre, president of Eastbridge, does not expect the voluntary sales market to cool down soon.
Benefit brokers generated $4.75 billion in new sales in 2016. For the second year in a row, career agents scored the second highest sales at $1.17 billion. Voluntary brokers – what the studys authors call classic worksite brokers and worksite specialists – accounted for $879 million and $658 million in sales, respectively.
For the study, the Avon, Conn., consultancy profiled 65 individual and group insurance carriers.
These numbers are a continuation of a trend that has been underway for years, according to Lowerre.