Workplace life and supplemental health sales increase in 2Q

WINDSOR, Conn., Oct. 2, 2024 — According to LIMRA’s workplace benefits sales surveys, U.S. workplace supplemental health product sales ― accident, critical illness, cancer, hospital indemnity, and other supplemental health insurance products ― totaled $550 million in the second quarter, a 6% increase over second quarter 2023. Year to date (YTD), these products totaled more than $2 billion in new sales, representing a 10% increase when compared to the same period last year.

Accounting for 92% of supplemental health sales, the product lines of accident, critical illness and hospital indemnity insurance combined posted growth of 12% when compared to the first half of 2023.

“Nearly 3 out of 4 carriers (74%) reported an increase in premium sales in the first half of 2024. Gains were double-digit or greater for 23 of the 29 companies (79%) reporting increases,” said Patrick Leary, corporate vice president and director of LIMRA’s workplace benefits research program.

Life insurance

Workplace life insurance new premium totaled $656 million in the second quarter, increasing 4% from the prior year. New premium for term products rose 2%, while new premium for permanent products increased 9%. Permanent product sales represent approximately 10% of the workplace life insurance market.

Year-to-date, workplace life insurance new premium totaled $2.75 billion through the second quarter, a 5% year-over-year increase.

“The majority of carriers — nearly 7 in 10 — reported higher sales through the second quarter with 22 companies up by at least 9% over 2023 levels,” Leary notes.

Disability insurance

Total workplace disability insurance new premium was $592 million in the second quarter, down 5% from prior year.

Total workplace disability insurance new premium was $2.4 billion in the first six months of 2024, down 4% year over year. Total short-term disability insurance new premium decreased 7% while long-term disability insurance new premium fell a modest 1% through the first six months of the year.

“The top 10 carriers, which account for 74% of total new disability insurance premium in the first half of 2024, posted a 6% decline, while the remaining carriers reported an increase of 3%,” Leary says.

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.