Study Says Worksite Industry Showed Double-Digit Growth In 2000
Theres good news for the worksite industry. According to Eastbridge Consulting Groups annual worksite report, the worksite industry realized double-digit growth again in 2000. Total sales, which equaled $3.1 billion in 2000, were up 19% over 1999 results.
However, while this represented a nice rate of growth for the industry as a whole, the market continues to be very fragmented.
What Your Peers Are Reading
The top 15 carriers included in the study accounted for 57% of the worksite market; the top two carriers alone had a 30% market share. Only the top carrier had a double-digit market share. All but the top two carriers had less than 4% market share, with the majority having less than 2% market share.
This years U.S. Worksite Sales Tracking Report includes dataworksite sales, inforce premium, product line sales, and distribution channelsfrom 56 worksite marketing carriers. These companies accounted for almost 70% of the estimated sales volume for 2000.
As mentioned previously, the report estimates 2000 total worksite new sales at $3.1 billion (up from $2.6 billion in 1999). The chart shows the estimated sales for 1997 through 2000.
The report also looked at sales results by product platformindividual or groupand line of business. Group products accounted for 39% of sales in 2000 while individual products made up 61%. This represented a slight change from 1999 with 36% group and 63% individual.
As for sales by line of business, disability accounted for the largest percentage (almost 25%) of worksite sales, followed closely by life insurance (primarily whole life and universal life plans).
Accident, cancer/critical illness, and dental insurance also accounted for a significant percentage of sales (ranging between 14% and 18%). Long-term disability insurance sales ranked last.