U.S. workplace supplemental health product sales―accident, critical illness, cancer, hospital indemnity, and other supplemental health insurance products―totaled $543 million in the third quarter, a 6% increase over the same period last year.
This according to LIMRA’s latest workplace benefits sales survey, released on Dec. 17.
Year to date (YTD), these products totaled $2.6 billion in new sales, representing a 10% increase when compared to the prior year.
Accounting for 91% of supplemental health sales, the product lines of accident, critical illness and hospital indemnity insurance combined posted growth of 11% when compared to the first nine months of 2023.
“As a strong 2024 concludes, many are anticipating continued economic growth, but at a more moderate pace in 2025. However, potential tariffs could hinder growth and employer costs moving forward.” said Patrick Leary, corporate vice president and director of LIMRA’s workplace benefits research program.
Life Insurance
Workplace life insurance new premium totaled $620 million in the third quarter, increasing 1% from the third quarter of 2023. New premium for term products rose 6% over prior year, while new premium for permanent products increased 9% from the same period last year.
YTD, workplace life insurance new premium totaled $3.44 billion through the third quarter, a 6% year-over-year increase.
“The majority of carriers—more than 7 in 10—reported higher sales through the third quarter with 20 companies up by double digits over 2023 levels,” Leary said.
Disability Insurance
Total workplace disability insurance new premium was $649 million in the third quarter, down 3% from the same period last year.
Total workplace disability insurance new premium was $3.1 billion in the first nine months of 2024, down 3% year over year. Total short-term disability insurance new premium decreased 5% for the third quarter, and 6% from prior year. Long-term disability insurance new premium was flat in the first nine months of the year.
“The top 10 carriers, which account for 73% of total new disability insurance premium in the first three quarters of 2024, posted a 4% decline, while the remaining carriers reported a decrease of 2%,” Leary added.
LIMRA’s workplace benefits sales surveys for life insurance, disability insurance and supplemental health represent at least 90% of their respective annualized premium markets.
LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 member organizations. The latest data table with U.S. workplace sales trends can be found in LIMRA’s Fact Tank.
