AVON, CONNECTICUT, USA (June 23, 2009) – Voluntary short-term disability led the field in terms of sales of voluntary products in 2008, according to Eastbridge�s annual U.S. Worksite Sales Report. Sales for the year were over $800 million. Term life came in second with about $778 million in sales. Disability (VSTD plus VLTD) and life insurance (term plus UL/WL) held an almost identical market share in overall product market share (22 percent each).
In terms of sales growth, term life, critical illness, and accidental death & dismemberment saw significant increases. Specifically, term life sales increased by 30 percent and critical illness sales by 19 percent from 2007 to 2008. AD&D sales were up about 12 percent. Interestingly, there were few lines with any significant decreases this year. Vision and long-term care were down and short-term disability was down just about one percent. The following chart shows the increases and decreases by line of business:
| Line of Business | Inc/Dec Over �07 |
|---|---|
| Term |
30.1%
|
| Critical Illness |
18.8%
|
| AD&D |
12.3%
|
| HI/Voluntary Medical |
8.8%
|
| Dental |
7.5%
|
| LTD |
5.7%
|
| Cancer |
5.6%
|
| UL/WL |
5.5%
|
| Accident |
1.6%
|
| STD |
-1.3%
|
| Vision |
-7.1%
|
| LTC |
-46.2%
|
The mix of group vs. individual sales changed somewhat in 2008 (after several years of no change) . Group sales increased to 48 percent of the total sales, up from 46 percent in 2007. The growth rate for group products in 2007 was significantly higher than for individual. Group sales grew at 8.5 percent while individual was down slightly by 0.3 percent.
The U.S. Worksite Sales Report is an annual report conducted by Eastbridge for the past tenyears. The most recent report (2008) includes detailed data on the performance of 62 worksite marketing carriers, both group and individual, and represents the largest number of carriers included in any sales report for the industry. The report is only available to participants. For more information, contact Eastbridge at info@eastbridge or call (860) 676-9633.
About Eastbridge Consulting Group, Inc.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada. http://www.eastbridge.com.
