Disability Insurance Observer: VSTD

(AP Photo/Charles Dharapak) (AP Photo/Charles Dharapak)

The voluntary short-term disability (VSTD) market is a great market, and that makes it a tough market.

Eastbridge Consulting Group Inc., Avon, Conn., talks about the difficulties VSTD players face in a report based on data from 19 carriers and 25 plans.

Eastbridge found that 97% of the companies that said they were in the employee-paid benefits market in 2010 said they were selling VSTD coverage.

That year, U.S. VSTD sales totaled $776 million, and the product accounted for 15% of all voluntary product sales.

About 45% of the carriers that participated in the Eastbridge survey told the firm they expect VSTD to be a growth product over the next few years.

But the fact that the market is such a big, competitive market means that the companies selling VSTD products must have great product features, marketing programs or other differentiators to help them stand out, Eastbridge says.


The Inter-Company Marketing Group, Ashburn, Va., will be offering a panel discussion on income protection products at its annual meeting, which is set to start Feb. 1 in Phoenix.

industry's leading association devoted to fostering strategic alliances in the insurance and financial services marketplace.

The scheduled speakers are John Nichols, president of Disability Resource Group Inc., Chicago, an independent distribution organization; Chris Haire, a product director at Mutual of Omaha Insurance Company, Omaha, Neb.; Susan Ondack, a regional vice president at Principal Financial Group Inc., Des Moines, Iowa (NYSE:PFG); and Randy Mousel, a brokerage sales executive at Mutual of Omaha.

Participants will talk about opportunities in disability insurance sales and for disability insurance marketing alliances, organizers say.

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