New Eastbridge report shows continued growth in accident coverage

AVON, CONNECTICUT, USA (September 17, 2024)

Annual sales near pre-pandemic highs despite price drops

Voluntary benefit carriers are seeing higher sales for personal injury accident products, even though many have lowered their premiums over the past two years, according to the latest Eastbridge Consulting Group research.

Eastbridge’s Voluntary Personal Injury Accident Products Spotlight™ Report shows accident plan sales grew another 4% last year to almost $1.1 billion and account for nearly 12% of all voluntary sales. At the same time, more than half of carriers that provided average premiums for the report say their premium rates have dropped.

“Despite inflation in other parts of the economy, average annual premiums for accident coverage have actually decreased over the past two years,” said Danielle Lehman, Eastbridge senior consultant. “Carriers we surveyed say the drop is due to price competition and pressure for lower premiums — both of which are creating challenges for carriers in this market.”

Eastbridge’s Voluntary Personal Injury Accident Products Spotlight™ Report compiles data collected in May and June 2024 from 31 voluntary carriers representing 33 different accident products. The report covers topics including product features and detailed benefits, underwriting and eligibility guidelines, sample rates, commissions, sales and participation rates, and future trends. Carriers can use this information to better understand the voluntary accident market and identify opportunities to make their products more competitive.

Other key findings in the report include:

• Flexibility in plan design and choice are the norm, including a standard offering of multiple plans or flexible benefit amounts to match existing benefits.
• Most carriers surveyed say they make frequent product revisions and updates to remain competitive.
• Claims integration, including coordination with medical plans, is a recent key trend carriers expect will continue going forward.