Eastbridge: Life Insurance Is Most Profitable Voluntary Product Line [Professional Services Close – Up]

In a recently published report by Eastbridge, a group of carriers rated their voluntary products in terms of profitability.

The report found that this year, as last year, voluntary AD&D coverage received the highest rating, with 43 percent of the respondents selecting it as a 'very profitable' product line. Universal life/whole life was ranked second (with 41 percent) followed by term life (with 26 percent). The Frontline Report, Worksite/Voluntary Product Trends 2012, is published every other year by Eastbridge Consulting Group, Inc.

"Although these products received the highest percentage rating them as very profitable, most carriers surveyed actually classified their products as having average profitability," said Eastbridge VP, Bonnie Brazzell. Fewer companies ranked any product as 'very profitable' this year. "This year saw major swings in several lines; as an example fewer companies chose long-term disability, cancer, and hospital indemnity as very profitable causing them to fall out of the list of very profitable products," says Gil Lowerre, Eastbridge President.

The voluntary products rated most frequently as 'unprofitable" were dental, vision, and critical illness insurance. "This is somewhat surprising considering that critical illness was ranked first by the survey respondents in terms of growth products in the next two to three years. What's more, both dental and critical illness had the highest growth rate (22 and 20 percent respectively) this past year," adds Lowerre.

The Worksite/Voluntary Product Trends 2012 Frontline Report is conducted every two years by Eastbridge. Information Partner Companies as well as survey participants receive the Frontline Report free of charge.

Eastbridge Consulting Group is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.

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