AVON, CONNECTICUT, USA (August 13, 2004)�According to Eastbridge Consulting Group’s fifth annual U.S. Worksite Study, voluntary life sales outpaced disability sales in 2003, reversing the result seen in 2002. The study tracked 55 worksite marketing carriers, representing almost 90 percent of the estimated $4.321 billion worksite sales volume for 2003.
“Disability insurance sales have been growing at a faster pace than life sales for the past few years and, last year, took the top share of the total worksite sales,” said Gil Lowerre, president, Eastbridge Consulting Group. But this year, life sales narrowly edged past disability sales. In 2003, disability accounted for 23 percent of new worksite sales while life accounted for 25 percent. Voluntary term life sales grew slightly more than universal/whole life sales in 2003.
“This year the highest growth (over 50 percent) was seen in hospital indemnity and supplemental medical plans,” adds Lowerre. “Life and disability sales, however, increased at rates more comparable to the market overall and cancer/critical illness and dental actually showed slight decreases over 2002.”
According to Lowerre, this trend is again consistent with Eastbridge’s consumer research, which shows that today’s employers and employees are more interested in products that help cover deductibles and out-of-pocket expenses than they were in the past. As evidence of this, more carriers than ever are offering hospital/medical supplement products.
The U.S. Worksite Study is conducted annually by Eastbridge Consulting Group. All participants receive a free copy of the study’s findings, including company-specific results. For information about participating in next year’s study, send an email to at [email protected].
Eastbridge Consulting Group, Inc., is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.