Brokers best positioned to capitalize on opportunities understand the segment size nuances and tailor their product and strategies accordingly. (Photo: Shutterstock)
Employers of all sizes offer brokers the potential for growth. Brokers focusing on the small-case market look to expand up-market, and large national brokerage/consulting houses are looking at opportunities down-market. The voluntary penetration chart shows the percentage of employers offering voluntary products and employees who own them.
Small market (fewer than 100 lives)
Bonnie Brazzell and Nick Rockwell,
Eastbridge Consulting Group, Inc.
The small-market segment is underpenetrated and has the lowest employee ownership. These case sizes represent around 90 percent of all U.S. employers (when under 10 employee businesses are included) and a third of all employees.
The largest obstacles in serving this market are finding cost-effective methods to reach the masses and being able to write a large enough volume of cases. The upside is that the market is less competitive. A broker can use just one carrier and offer paper enrollment, as most employers don't have a preferred enrollment method.
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