Q4 Sales of Some Voluntary Products Fell: LIMRA
One of the weak performers was voluntary dental insurance.
Falling stock prices, or competition from richer employer-paid benefits, may have pinched sales of some types of voluntary insurance products in the fourth quarter of 2018.
New annualized premium revenue from sales of voluntary insurance products increased 3% in 2018, to $7.2 billion, according to new survey data from LIMRA.
For all of 2018, sales of nine of the 13 voluntary products LIMRA tracks held steady or increased. Sales of the worst-performing products, voluntary term life and voluntary dental, fell just 3%.
For the fourth quarter of 2018, LIMRA has posted sales data for 11 products. Sales of six of those 11 products were lower than in the fourth quarter of 2017. Some of decreases were substantial.
(Related: Amalgamated Life Adds Voluntary Group Term Life)
Sales of the best-performing product, voluntary accidental death and dismemberment insurance, were 298% higher in the fourth quarter of 2018 than in the fourth quarter of 2017.
Sales of the product that ranked second, voluntary whole life, increased 12%.
But sales of three types of voluntary products fell 10% or more.
Sales fell 10%, year over year, for voluntary hospital indemnity insurance; 12% for voluntary dental insurance; and 15% for voluntary universal life and voluntary variable universal life.
The Numbers
LIMRA bases the voluntary market survey results on an issuer survey.
The full survey reports are behind paywalls.
LIMRA put out a press release showing how much sales of various products have changed, but it did not give the actual sales figures for the products included.
When LIMRA conducted the survey, it asked for information about sales of true voluntary products, or group products set up in such a way that the employees pay part of the premiums. LIMRA also asked for information about worksite sales, or sales of individual insurance products at the worksite. The press release combines the results for the voluntary products and the worksite products.
Resources
A summary of the LIMRA voluntary market survey results is available here.
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