The annual Benefits Selling/Eastbridge voluntary benefits survey was conducted during March and April of this year, and almost 350 producers responded, representing a combination of employee benefit brokers, traditional voluntary brokers, enrollment companies, and agents. This article focuses on the current trends as reported by those active in the market on a daily basis and compares these to results from past studies.

One strong theme emerged in this year's survey: Brokers who are selling voluntary are selling more today than in the past.

In fact, 38 percent of those brokers now actively sell voluntary benefits, compared to only 21 percent just two years ago. “Actively sell” in this survey is defined as trying to sell payroll deduction voluntary/worksite programs to all cases and often using voluntary products to initiate the client relationship.

The percentage of brokers who sell voluntary only occasionally (when they run across a voluntary case) decreased from 29 percent to 23 percent this year. The percentage cross-selling to select accounts was also down from 34 percent in 2014 to 26 percent in 2016.

The Affordable Care Act (ACA) is at least somewhat responsible for the more active sales, according to the brokers surveyed. Almost seven in 10 indicated they are selling more voluntary due to ACA, and one-quarter of all respondents said they are selling “significantly more.”

Voluntary-focused brokers and career agents were more likely to respond with “significantly more” than the benefit brokers; however, the percentages were up this year for that response across all the broker categories.

Voluntary productivity per broker also increased, which is in accordance with the higher level of voluntary benefit activity. In years past, over half (53 percent) of benefit brokers wrote less than $50,000 in sales as measured by new business annualized premium (NBAP). This year, that number decreased to 46 percent. Conversely, the percentage selling over $100,000 in NBAP increased to 34 percent, up from just 23 percent one year ago.

Along with increased sales and productivity per broker, another trend has emerged: more competition. Both voluntary brokers and career agents are feeling the pressure of competition (which is most likely coming from the benefit brokers), while the benefit broker category is less likely to feel increased competition. In fact, just 18 percent of benefit brokers indicated experiencing a high level of competition when selling voluntary benefits, compared to 38 percent of voluntary brokers and 41 percent of career agents.

None of the groups expressed a high degree of concern with “electronic brokers” taking over their cases using broker of record (BOR) letters. About one-quarter of benefit brokers and voluntary brokers said they are “extremely” or “very” concerned about this. Career agents are the least concerned of all the respondent groups, with 52 percent describing themselves as only “a little” or “not” concerned.

The trend we saw developing last year continued in this survey. Benefit brokers and voluntary brokers are continuing to sell the same types of products today, unlike in the past when they sold different types of voluntary products. In looking at the five most frequently sold products, four are the same for both broker types, although the rank order is different.