Employers with more than 2,500 employees provide great opportunity for future voluntary sales, according to latest Eastbridge report
AVON, Conn., Sept. 24, 2019 (GLOBE NEWSWIRE) -- According to Eastbridge Consulting Group’s U.S. State ESI and EPI Data for 2018 report, the employer segment with greater than 2,500 employees had the highest volume of 2018 voluntary sales at 34%, up 2 percentage points compared to last year.
Voluntary Sales by Employer Size
| Employer Size Segment | Mix of Sales | |
| <10 employees | 9 | % |
| 10-25 employees | 8 | % |
| 26-99 employees | 14 | % |
| 100-499 employees | 18 | % |
| 500-999 employees | 7 | % |
| 1,000-2,500 employees | 10 | % |
| >2,500 employees | 34 | % |
However, this segment also had the lowest levels of penetration, indicating there is still good future sales opportunity. The Eastbridge Sales Index (ESI), which divides the employee population for each employer size by the sales for each employer size, provides a useful metric to assess penetration. It adds another dimension to assess future sales potential rather than looking at total sales alone.
For 2018, the 1,000 to 2,500 segment followed closely by the 500 to 999 segment have the highest ESIs, indicating good penetration. The lowest ESIs continue to be in the smallest employer segments—under 10 lives, 10 to 25 lives, and 26 to 99 lives, where many carriers and brokers choose not to write or market. However, the low levels of penetration indicate opportunity for future sales.
| Employer Size Segment | ESI |
| <10 employees | 57 |
| 10-25 employees | 61 |
| 26-99 employees | 66 |
| 100-499 employees | 85 |
| 500-999 employees | 93 |
| 1,000-2,500 employees | 95 |
| >2,500 employees | 56 |
This 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 provides a useful perspective for carriers to look at real sales coverage and penetration and, therefore, the opportunity for voluntary growth.
The U.S. State ESI and EPI Data report is an adjunct to Eastbridge’s annual U.S. Voluntary/Worksite Sales Report and includes sales and inforce data by state, as reported by the survey participants. The report is free but available only to survey participants. For more information on becoming a participant in the next annual survey, contact the company at info@eastbridge.com or call (860) 676-9633.
Eastbridge Consulting Group, Inc. (www.eastbridge.com) is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.
FOR FURTHER INFORMATION, CONTACT:
Ginger Bates (803) 782-0560
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