Employee Benefits Brokers Lead Other Channels In Worksite Sales
The nature of the worksite landscape is changing. Historically, career agents and brokers specializing in voluntary or worksite sales dominated the worksite-voluntary benefits marketplace. But employee benefits brokers now claim the largest percentage of worksite sales in 2003 of any single producer segment, according to our companys 5th annual U.S. Worksite Study.
Several years ago, Eastbridge conducted a market segmentation study to learn more about the different types of producers who were selling worksite or voluntary products. (The terms “worksite” and “voluntary” are used interchangeably here to mean products sold to employees where they work and paid for by the employee through payroll deduction. The products can be either group or individual platform.)
The segmentation study found 6 segments of producers: 1 career agent segment and 5 broker segments.
Career agents are producers who work primarily for a single company. AFLAC and Colonial reps are examples of career agents.
The 5 broker segments are defined as follows:
Employee benefits brokers. These producers typically focus on traditional group and non-worksite individual benefits.
Classic worksite brokers. These producers focus on worksite sales.
Worksite specialists. This segment also focuses on worksite sales but tends to be larger organizations offering a wide variety of support services (Section 125 administration, billing, customer service and claims payment, for instance).
Occasional worksite producers. These producers are insurance generalists. They have a small agency that also sells insurance products other than worksitegroup, individual or property/casualty.
Multiline agency. The producers in this segment work in a worksite department of a large agency. The agency does not focus on worksite marketing, however, the department and its producers do.