Life insurance accounts for almost half of inforce voluntary premium according to a recent Eastbridge report

AVON, CONNECTICUT, USA (August 19, 2014)

According to Eastbridge Consulting Group’s U.S. State ESI and EPI Data for 2013 report, life insurance has the largest share of inforce with term and UL/WL accounting for a total of 47% of all inforce. Term insurance alone accounted for 37% of all inforce premium based on the carriers reporting. Forty-seven (47) companies reported their inforce premium by product line, representing roughly 84% of the total estimated inforce for 2013 (high estimate of inforce). Disability (STD and LTD) was a distant second at 17% of inforce premium, and dental insurance was third at 16%.

There were a few interesting differences between the mix of sales by product compared to the mix of inforce. Some of this reflects the typical persistency of the line (e.g.: life persists better than accident). The following chart shows the mix of sales and inforce by line of business.

Line of Business
Mix of Inforce
for 2013

Mix of Sales
for 2013

Term

37%

22%

Dental

16%

13%

UL/WL

10%

7%

STD

9%

14%

LTD

8%

7%

Accident

3%

12%

Hospital Indemnity/Supplemental Medical

2%

8%

Cancer

2%

5%

Vision

2%

5%

Critical Illness

2%

5%

Other

3%

2%

 

The current U.S. State ESI and EPI Data for 2013 is the fourth version of this annual report released by Eastbridge. In addition to the data on inforce premium by line of business, the report includes information on sales by employer size and state-by-state sales and inforce data. The report also provides two measures that relate the state data to the number of employed Americans in each state. The ESI (Eastbridge Sales Index) and EPI (Eastbridge Premium Index) provide real sales coverage (ESI) and penetration (EPI) measures on a state level.

The report is an adjunct to Eastbridge’s annual U.S. Worksite/Voluntary Sales Report¬© and is free but available only to carriers that provide their state sales data as a part of the survey. For more information on becoming a participant in the 2014 survey, contact the company at info@eastbridge.com or call (860) 676-9633.

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

 


 

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