Eastbridge Report Looks at 2013 Voluntary Sales by Employer Size

Business Wire

AVON, Conn.--(BUSINESS WIRE)--

According to Eastbridge Consulting Group’s U.S. State ESI and EPI Data for 2013 report, the employer segment with over 2,500 employees accounted for the largest volume of voluntary sales again last year. This segment accounted for 36 percent of all voluntary sales, up from 33 percent in 2012.

 

Voluntary Sales by Employer Size

                   
Employer Size Segment                 Mix of Sales
                4%
10-25 employees                 7%
26-99 employees                 12%
100-499 employees                 17%
500-999 employees                 11%
1,000-2,500 employees                 13%
>2,500 employees                 36%
Total                 100%
               

“The sales numbers alone, however, do not tell the whole story,” says Gil Lowerre, president, Eastbridge. “If you look at the ESI (sales divided by the employee population) for each employer size, you can better tell which segments are well penetrated and which are still underpenetrated,” adds Lowerre.

For 2013, the 500-999 segment continues to have the highest ESI, followed closely by the 1,000-2,500 segment, indicating both have good penetration. The least penetrated segments are the two smallest ones—under 10 lives and 10 to 25 lives. “This comes as no surprise,” says Bonnie Brazzell, Eastbridge vice president, “since many carriers and brokers do not write in these smaller segments. However, it is interesting that 2,500 or more employee segment had the third lowest ESI. This segment is obviously still underpenetrated despite having the highest sales.”

                   
Employer Size Segment                 ESI
                22
10-25 employees                 38
26-99 employees                 57
100-499 employees                 70
500-999 employees                 122
1,000-2,500 employees                 109
>2,500 employees                 53
               

This fourth 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 changes the way carriers can look at real sales coverage and penetration and, therefore, the opportunity for voluntary expansion.

The report is an adjunct to Eastbridge’s annual U.S. Worksite/Sales Report© and is free but available only to carriers that provide their state sales data as a part of the survey. For more information on becoming a participant in the 2014 survey, contact the company at info@eastbridge.com or call (860) 676-9633.

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.

Contact:
Eastbridge Consulting Group, Inc.
Ginger Bates, 803-782-0560
View Comments (0)