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 Products may be out-of-date, underwriting may be toorestrictive, or customer needs and employer priorities may havechanged.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?”

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.