In last month’s column, we looked at overall voluntary sales for 2011. In this edition, we analyze the results further by looking at product line sales as well as platform.
[Also see 5 voluntary products to watch this year]
As we reported last month, total 2011 voluntary sales for all products was $5.478 billion (up 4.5 percent over 2010), according to Eastbridge’s annual U.S. Worksite/Voluntary Sales Report.
As has been the case for the last few years, life insurance took the largest share of the line of business sales. Total life sales were $1.347 billion. This was another increase (up about 1.3 percent over 2010) and was the third straight year of increases. As in prior years, term life sales were significantly higher than UL or whole life sales but the term line actually had a slight decrease (down 2 percent) while the UL/WL line was up about 8 percent.
Disability had the second highest market share at 20 percent of total voluntary sales. Short-term life sales were $754 million, down 3 percent from 2010 while long-term disability was up 19 percent to $321 million.
Accident sales accounted for 13 percent of total voluntary sales and had a healthy increase of 14 percent over 2010 results. Hospital indemnity/supplemental medical also had a 13 percent share of the total sales, but a more modest increase at just 2 percent. Both cancer and critical illness product sales were up in 2011. Cancer sales were $409 million, up about 2 percent from 2010. The real increase was in critical illness sales. This product line was up 20 percent for a total of $243 million in sales.
For the first time since the report’s inception, group voluntary product sales surpassed individual voluntary sales. In our next column, we’ll review the results by distribution segment.