insurance
Workplace insurance sales are beginning to normalize to pre-pandemic levels, resulting in lower sales this quarter, according to new LIMRA research.
“Over the past couple of years, workplace insurance sales have been strong, likely due to higher worker awareness about their need for coverage and employers choosing to offer a competitive benefits package to attract and retain the best workers in a very tight job market,” said Patrick Leary, corporate vice president and director of LIMRA’s workplace benefits research program.
However, softening economic conditions likely caused employers to pull back or pause their benefits packages during the first quarter of 2025, LIMRA said. The research also indicates employers plan to expand their benefit offerings over the next five years.
Total workplace life insurance premium fell 16% during the first quarter to $1.8 billion year over year. Nearly two-thirds of participating carriers reported declines, said LIMRA.
Whole life premium improved 6% while new premium for both term and permanent products dropped 16%. Group life insurance premium, which represents 93% of the market, fell 16% and individual sales were down 8%, according to the report.
Total workplace disability insurance new premium also fell during the first quarter, down 15% to $1.6 billion. Short-term disability insurance new premium declined 13%, while long-term disability insurance premium fell 16%.
Supplemental health product sales also softened following two consecutive years of growth. Accident, critical illness, cancer, hospital indemnity and other supplemental health insurance products saw $1.3 billion in new annualized premium, an 11% decrease from nearly $1.5 billion collected in the first quarter of 2024, said LIMRA.
The major supplemental product lines of accident, critical illness and hospital indemnity insurance, which accounted for 95% of all new supplemental health premium in the first quarter, posted drops in sales compared with last year. Group workplace supplemental health products fell 12% while individual worksite sales declined 3%, according to LIMRA.
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