In The Workplace

U.S. Workplace Benefits Sales Results Mixed In First Quarter 2024

Supplemental health insurance sales were up, while life and disability insurance sales posted declines

A new report from LIMRA reveals demand for broader benefits packages will grow in the next few years.

WINDSOR, Conn., June 25, 2024 — While recent LIMRA research suggests demand for broader benefits packages will grow in the next few years, workplace benefits sales growth has normalized from what was seen directly following the pandemic.

“Seventy percent of employers said their company’s benefits package will be critical to attracting and retaining the best workers over the next few years,” said Patrick Leary, corporate vice president and director of LIMRA’s workplace benefits research program. “More than half of employers (51%) believe their company will be offering more benefits in the future to compete for the best talent. As a result, LIMRA expects workplace benefits sales growth to continue to be strong in 2024 and 2025.”

Supplemental Health Insurance

In the first three months of 2024, U.S. workplace supplemental health product sales ― accident, critical illness, cancer, hospital indemnity, and other supplemental health insurance products* ― totaled nearly $1.3 billion in new annualized premium, a 3% increase year over year.

Accounting for 94% of all new supplemental health premium in first quarter 2024, the major product lines of accident, critical illness and hospital indemnity insurance combined posted growth of 4% when compared to the first quarter of 2023.

Group workplace and individual worksite sales held 88% and 12% new premium market share, respectively. Group workplace supplemental health products grew 4% in the first quarter of 2024, while individual worksite sales fell 1% year over year.

Seventy percent of employers said their company’s benefits package will be critical to attracting and retaining the best workers over the next few years...

“Two out of three carriers experienced growth in the first three months of 2024, and three quarters of these carriers reported double-digit growth,” Leary notes.

Disability Insurance

Total workplace disability insurance new premium was $1.7 billion in first quarter 2024, a year-over-year decrease of 12%. Short-term disability insurance new premium fell 17% and long-term disability insurance premium fell 6%.

Life Insurance

In the first quarter 2024, total workplace life insurance new premium reached nearly $2 billion, down 2% from prior year results. Group life premium fell 2% while individual life sales increased 2%.

Voluntary term new premium declined 7% in the quarter, while voluntary permanent product new premium increased 3%.

“Despite the relatively flat overall results, company-specific results were volatile. Seven in 10 life insurance carriers saw double-digit increases or decreases compared with first quarter 2023 results,” said Leary.

LIMRA’s workplace benefits sales surveys for life insurance, disability insurance and supplemental health represent more than 90% of their respective annualized premium markets.

LIMRA Fact Tank

You can find the latest data table with U.S. workplace sales trends in LIMRA’s Fact Tank.

 

 

 

*“Other supplemental health products” represents products that do not fit the other categories, such as gap insurance, minimum essential coverage plans, limited benefit medical, and heart/stroke products.
About LIMRA
Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 member organizations navigate change with confidence. Visit LIMRA at www.limra.com.

 

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