Double-Digit Sales Increases Seen For Voluntary Products
Amelia Island, Fla.
Sales of voluntary benefits products increased 12% in 2001 and double-digit growth in this market is expected to continue in the future, said Bonnie Brazzell, a vice president with Eastbridge Consulting Group, which is headquartered in Avon, Conn.
Speaking at the JHA Dynamics of Disability Seminar here earlier this month, Brazzell said that based on research Eastbridge had done, new business sales premium in this market amounted to $3.5 billion in 2001, up from $2 billion in 1997.
This new sales growth has also translated into growth of in-force premium, which came to an estimated $9.4 billion in 2001, she said, up from $5.7 billion in 1997.
In 2001, Brazzell said, new life sales, with 21% of new premium, slightly outpaced new disability sales, which had 20% of new premium.
Group product sales increased at four times the rate of individual product sales in 2001, according to Brazzell, and group product new premium amounted to 39% of the total.
Noting a developing trend, Brazzell said, “More products have both group and individual features.”
The fastest growing products in the voluntary market in 2001 in terms of percentage increases were long term care, cancer/critical illness, accident, disability and dental. “But some of these like long term care are off a small [premium] base,” she noted.