Last month we reviewed the voluntary industry's overall sales for 2012. Here we'll look at the sales by product line and platform.
Life insurance overall showed a solid increase of slightly more than 11 percent. Total life sales for 2012 were $1.546 billion. Term accounted for 72 percent of the total life NBAP (up from 68 percent in 2011). Universal life/whole life had a decrease of 3 percent while term life sales were up almost 18 percent.
Total disability sales were $1.263 billion, up almost 14 percent over 2011. Disability sales accounted for 21 percent of voluntary NBAP. Short-term disability sales accounted for 66 percent of the disability totals, down from 70 percent last year. STD sales were up seven percent over 2011, but LTD sales were up by 29 percent.
Accident sales accounted for 14 percent of total voluntary sales and, again this year, had a healthy increase of 12 percent compared to 14 percent in 2011. Hospital indemnity/supplemental medical had a 10 percent share of the total sales, down from 13 percent in 2011.
The line fell almost 17 percent, due to lower limited benefit medical plan sales. Cancer sales were up about 3 percent from 2011 while critical illness sales were up 17 percent. Critical illness sales were $294 million while cancer sales were $437 million.
When we look at voluntary sales by product platform, group sales exceeded individual sales for the second year. The mix of sales by platform was 56 percent group and 44 percent individual. The group line grew at a rate of about nine percent while the individual line grew at four percent. We anticipate that group sales will continue to outpace individual as more and more carriers are moving their products to a group platform.
In our next column, we'll review the results by distribution segment and wrap up with a few thoughts about the future.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
