Summer 2010, No. 84
Voluntary Sales Grew In
2009
Eastbridge’s annual U.S. Worksite Sales Report for 2009
was released several weeks ago and, despite the recession, the
results show that the voluntary market continues to grow.
New voluntary sales (U.S.) totaled an estimated $5.397 billion
in 2009, an increase of 3.3 percent over 2008 results. The following
graph shows the sales results since 1997.
New Business Annualized Premium
(in Millions)
Eighty (80) percent of total voluntary sales were
from the industry’s top 15 companies. These 15 companies
had an average growth rate of 3.1 percent, slightly below the
industry results. However, 10 of the top 15 had sales increases
with five of the companies having double-digit increases ranging
from 14 percent to 34 percent.
Inforce premium increased just under 8 percent
in 2009, bringing the estimated total inforce premium for voluntary
between $18.8 and $24.7 billion.
Life insurance sales had the top market share for
the year. New life sales were $1.3 billion for the year, up about
14 percent over 2008. Term life generated the most sales premium
in 2009 with over $940 million, up almost 21 percent over 2008.
Universal life and whole life sales were basically flat with $371
million.
Disability products accounted for the next largest
share of voluntary sales, coming in at 20 percent of the total.
Sales for disability products were actually down in 2009 as compared
to 2008. Total voluntary disability sales were just under $1.1
billion, down six percent.
Accident sales accounted for 13 percent of total
voluntary sales as did the hospital indemnity/supplemental medical
line. These lines were followed by cancer and critical illness
with a combined market share of 12 percent.
By platform, the industry continued to move towards
a group platform. In 2009, the growth rate for group product sales
was 6.7 percent, significantly higher than the almost flat individual
sales that were up by just 0.2 percent. This resulted in group
products increasing their share of total voluntary sales to 49
percent, up from 48 percent in 2008.
When looking at voluntary sales by distribution
channel, Benefit Brokers again accounted for the largest portion
of worksite/voluntary sales. According to the study, this segment
generated 52 percent of 2009 sales—over $2.8 billion of
the $5.397 billion total.
The following chart shows the share of sales for
each distributor segment and the segment’s increase over
2008 results.
New Business Annualized Premium
(in Millions)
Segment |
Estimated 2009 Sales |
Inc/Dec Over 2008
|
| Benefit Broker |
$2,826.8 |
18.8% |
| Career Agent |
$1,176.9 |
-27.2% |
| Classic Worksite Broker |
$793.6 |
6.8% |
| Worksite Specialist |
$421.8 |
14.5% |
| Occasional Producer |
$177.9 |
50.1% |
The U.S. Worksite Sales Report is an annual
study conducted by Eastbridge that tracks sales and inforce premium
for the voluntary industry. The report includes detailed sales,
inforce premium, distribution, and product data on the performance
of 60 carriers, both group (voluntary) and individual (worksite)—the
largest number of carriers included in any sales report for the
industry. This year’s study includes data from 1997 through
2009.
If your company did not participate this year,
call us and we’ll put you on the list for next year.
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