A few months ago, we wrote about the surge in employee benefitbroker productivity: Today, brokers account for more than 57percent of all voluntary sales. At the same time, takeovershave exploded, increasing from 12 percent of all sales in 2006 to50 percent in 2013. It would seem logical that employee benefitbrokers are accounting for much of this takeover activity.

That conclusion is supported by two other facts. First, mosttakeovers are in three product lines: term, disability, and dental,the three lines that many employee benefit brokers focus on.Second, takeovers at some traditional, true-group (employer-paid)companies have exceeded 85 percent of all new voluntary sales,while they remain below twenty-percent range at some carriers thatare focused on traditional worksite brokers.

Takeovers should be an important and legitimate part of brokeractivity. Products may be out-of-date, underwriting may be toorestrictive, or customer needs and employer priorities may havechanged. But if a broker is writing primarily takeover business,it's fair to ask, “Is that all there is?”

In the traditional employer-paid business, takeovers often arethe only account sale available to a broker. But in voluntary, 23percent of employers don't offer any voluntary products and 62percent of employees have yet to buy their first voluntaryproduct.

This window of opportunity won't stay open forever. Eventually,new cases and enrollments will be harder to come by and takeoverswill become more common for all brokers. While it appears that dayis far off, the opportunity shrinks a little each year. All brokerswant to grow their book of business, and all brokers would like tolock in future sales potential. But focusing on takeovers is a hardway to do that, especially when virgin case opportunities are allaround us.