Insurers in the voluntary market are getting more of their business from takeovers of other insurers’ plans, but the rate of increase in the voluntary market takeover rate is slowing, according to Eastbridge Consulting Group Inc.
Eastbridge, Avon, Conn., has reported that finding in an analysis of results from a 2010 survey of 64 group and individual worksite marketing carriers.
The percentage of worksite sales coming from takeover sales – moves by one insurer to replace another insurer’s plan – increased to 41% in 2010, from 38% in 2009.
But the 3% compares with a 9% increase between 2008 and 2009, and a 12% increases between 2007 and 2008, Eastbridge reports.
Eastbridge believes the takeover rate in the worksite side of the market is still much lower than the average rate for the traditional group benefits business, according to Eastbridge President Gil Lowerre.
- Allison Bell