LIMRA: Workplace Supplemental Health Products and Disability Insurance Sales Increase in Third Quarter 2022

WINDSOR, Connecticut, Jan. 13 (TNSres) -- LIMRA issued the following news release:

New annualized premium for supplemental health products - accident, critical illness, cancer, hospital indemnity, and other supplemental health insurance products/* - increased 3% in the third quarter 2022, according to LIMRA's workplace benefits sales surveys.

"Interest in critical illness coverage increased during the pandemic," said Patrick Leary, corporate vice president and director of LIMRA's workplace benefits research program. "While third quarter sales weren't as strong as the first half of the year, growth continued in the third quarter."

Supplemental Health Insurance

In the third quarter of 2022, U.S. workplace supplemental health carriers reported a combined total of $453 million, 3% higher than the same period in 2021. Through the first nine months of 2022, workplace supplemental health insurance product premium totaled $2.1 billion, rising 11% year over year.

New premiums sales for both group and individual workplace supplemental health products improved in the third quarter, up 2% and 5%, respectively. Through the first nine months of 2022, group and individual workplace supplemental health premiums also experienced growth. Group supplemental health product premium rose 12% while individual products increased 8%.

Disability Insurance

Total workplace disability insurance new premium sales were $560 million in the third quarter, a year-over-year quarterly increase of 3%. Long-term disability insurance premium drove overall growth in the quarter, up 6%. Short-term disability premium was up 1% for the quarter.

Overall, U.S. workplace disability new premium totaled $2.8 billion through September 2022, a year-over-year increase of 1%.

Life Insurance

In the third quarter, total workplace life insurance new premium was $630 million, down 6% from prior year. In the first nine months of 2022, U.S. workplace life insurance new premium totaled $3 billion, down 1% from the same period in 2021.

For the quarter and for the first nine months of 2022, overall workplace life insurance premium declines were largely driven by a decrease in term life insurance premium, which fell 21% for the quarter and 5% for the first nine months of 2022.

"In 2021, we saw several large employer sales, which is hard to replicate year over year," Leary said. "We are, however, seeing more sales among small and midsize employers that held off making changes to their benefits during COVID."

LIMRA's workplace benefits sales surveys for life insurance, disability insurance and supplemental health represent at least 90% of their respective annualized premium markets.

You can find the latest data table with U.S. workplace sales trends in LIMRA's Fact Tank (https://www.limra.com/en/newsroom/fact-tank/).

Footnote:

*/"Other supplemental health products" represents products that do not fit the other categories, such as gap insurance, minimum essential coverage plans, limited benefit medical, and heart/stroke products.

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Original text here: https://www.limra.com/en/newsroom/news-releases/2023/limra-workplace-supplemental-health-products-and-disability-insurance-sales-increase-in-third-quarter-2022/