Eastbridge: Life Insurance with AD&D Coverage Is Carriers’ Most Profitable Product Line

“Although these products received the highest percentage rating them as very profitable, most carriers surveyed actually classified their products as having average profitability,” says Eastbridge Vice President Bonnie Brazzell. “Fewer companies ranked any product as ‘very profitable’ this year.” “This year saw major swings in several lines,” adds Eastbridge President Gil Lowerre. “As an example, fewer companies chose long-term disability, cancer, and hospital indemnity as very profitable, causing them to fall out of the list of very profitable products.”

Voluntary products rated most frequently as ‘unprofitable” by the survey participants included dental, vision, and critical illness insurance.

“This is somewhat surprising considering that critical illness was ranked first by the survey respondents in terms of growth products in the next two to three years,” says Lowerre. “What’s more, both dental and critical illness had the highest growth rate—22% and 20%, respectively—this past year.”