Voluntary product winners and loserseastbridge.com/news/Artlcle/2015/07.15_What's_Next.pdf · (65...
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July 2015 | Benefits Selling | BenefitsPro.com 14 LAST MONTH we reviewed the voluntary industry’s 2014 sales, which were up almost 4 percent to $6.89 billion. Now let’s look at sales by products and platform. Life insurance continued to take the largest share of total voluntary sales (27 percent) with more than $1.877 billion in 2014. Term accounted for 76 percent of the total life NBAP. Both universal life/whole life and term experienced virtually flat sales (each down 0.2 percent). Total term sales were $1.431 billion while UL/WL sales were $445 million. Total disability sales were $1.363 billion in 2014 (20 percent of sales). Short-term disability sales still account for the majority of disability sales at 67 percent. STD sales were down 2 percent compared to 2013, but long-term disability sales increased just over 3 percent. With both life and disability sales sluggish this year, you might wonder which products were the “winners” in terms of increased sales. Critical illness sales ($392 million) led the way with an increase of just under 20 percent, and for the first time ever, exceeded cancer sales (down 4 percent to $343 million). Accident sales were up this year with a 9 percent increase over 2013 and $848 million in sales compared to $775 million in 2013. Hospital indemnity/supplemental medical also saw an increase in 2014 of over 10 percent with $608 million in sales. e long-term care and vision lines also saw solid increases of 13 percent and 9 percent, respectively. Looking at voluntary sales by product platform, products filed on a group platform continued their dominance over individual products (65 vs. 35 percent). Group product sales grew 6 percent while individual sales were down 0.5 percent. Voluntary product winners and losers ■ This is part two of a three-part series. The annual U.S. Voluntary/Worksite Sales Report includes data from 1997-2014 and detailed results for more than 60 carriers. TICKER Gil Lowerre can be reached at (860) 676-9633 or glowerre@eastbridge. com. Bonnie Brazzell can be reached at (803) 738-1236 or bbrazzell@ eastbridge.com. Read “Voluntary market forecast for 2015” BenefitsPro.com what’s next By Bonnie Brazzell and Gil Lowerre by line of business for 2014 VOLUNTARY SALES BY PLATFORM Mix of sales INDIVIDUAL GROUP 2004 $2,399 $1,824 2005 $2,485 $1,882 2006 $2,683 $2,032 2007 $2,740 $2,298 2008 $2,733 $2,492 2009 $2,738 $2,659 2010 $2,634 $2,609 2011 $2,546 $3,111 2012 $2,653 $3,377 2013 $2,409 $4,235 2014 $2,396 $4,494 Life insurance 27 % Disability 20 % Dental 14 % Accident 12 % Cancer/ critical illness 11 % Hospital indemnity/ supplemental medical 9 % Vision 5 % All other 2 %
Transcript of Voluntary product winners and loserseastbridge.com/news/Artlcle/2015/07.15_What's_Next.pdf · (65...
July 2015 | Benefits Selling | BenefitsPro.com14
Last month we reviewed the voluntary industry’s 2014 sales, which were up almost 4 percent to $6.89 billion. now let’s look at sales by products and platform.
Life insurance continued to take the largest share of total voluntary sales (27 percent) with more than $1.877 billion in 2014. term accounted for 76 percent of the total
life nBaP. Both universal life/whole life and term experienced virtually flat
sales (each down 0.2 percent). total term sales were $1.431 billion while UL/WL sales were $445 million.
total disability sales were $1.363 billion in 2014 (20 percent of sales). short-term disability sales still account for the majority of disability sales at 67 percent. stD sales were down 2 percent compared to 2013, but long-term disability sales increased just over 3 percent. With both life and disability sales sluggish
this year, you might wonder which products were the “winners” in terms of increased sales. Critical illness sales ($392 million) led the way with an increase of just under 20 percent, and for the first time ever, exceeded cancer sales (down 4 percent to $343
million). accident sales were up this year
with a 9 percent increase over 2013 and $848 million in sales compared to $775 million in 2013. hospital indemnity/supplemental medical also saw an increase in 2014 of over 10 percent with $608 million in sales. The long-term care and vision lines also saw solid increases of 13 percent and 9 percent, respectively.
Looking at voluntary sales by product platform, products filed on a group platform continued their dominance over individual products (65 vs. 35 percent). Group product sales grew 6 percent while individual sales were down 0.5 percent.
Voluntary product winners and losers
■ This is part two of a three-part series. The annual U.S. Voluntary/Worksite Sales Report includes data from 1997-2014 and detailed results for more than 60 carriers.
TICKER
Gil Lowerre can be reached at (860) 676-9633 or [email protected]. Bonnie Brazzell can be reached at (803) 738-1236 or [email protected].
Read “Voluntary market forecast for
2015”
BenefitsPro.com
what’s next By Bonnie Brazzell and Gil Lowerre
by line of business for 2014
Voluntary sales by platform
Mix of sales
IndIvIdual
Group
2004 $2,399 $1,824
2005 $2,485 $1,882
2006 $2,683 $2,032
2007 $2,740 $2,298
2008 $2,733 $2,492
2009 $2,738 $2,659
2010 $2,634 $2,609
2011 $2,546 $3,111
2012 $2,653 $3,377
2013 $2,409 $4,235
2014 $2,396 $4,494
Life insurance
27%
Disability
20%
Dental
14%
Accident
12%
Cancer/critical illness
11%
Hospital indemnity/
supplemental medical
9%
Vision 5%
All other 2%
BS 7.15 What's Next.indd 14 18/06/15 2:06 PM
