Insurance Policy, Life; Health, car, travel, for background
Workplace life insurance, disability insurance and supplemental health sales grew in 2024, marking the fourth straight year of new premium growth, according to LIMRA’s 2024 workplace benefits sales survey.
Workplace life insurance new premium increased 10% year over year to $925 million in the fourth quarter. That was the fifth consecutive quarter that workplace life insurance new premium increased, according to the report. The number of employer groups that sold life insurance dropped by 1%, while participants increased 9%.
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New premium for term products, the largest share of workplace life insurance sales representing more than 80% of policies, grew 13% from the fourth quarter of 2023. New premium for permanent products, on the other hand, fell 1% over the same period.
For the year, workplace life insurance new premium totaled $4.5 billion in 2024, up 8% from 2023 premium, setting a new record.
“Throughout 2024, employers continued to use their workplace benefits programs to compete for talent in a tight job market. Our research finds more than 60% of workers are at least somewhat more inclined to stay with their employer because of their benefits package so it is not surprising that workplace benefits sales remained strong,” said Patrick Leary, corporate vice president and head of LIMRA workplace benefits research. “Sales growth was widespread with 7 in 10 carriers reporting gains year-over-year.”
Disability insurance grew 12% to $1.1 billion in the fourth quarter, with short-term disability premium rising 6% and long-term disability premium increasing 20%. For the year, disability insurance new premium was $4.2 billion, up 2%. Short-term disability insurance new premium fell 3% for the year while long-term disability insurance new premium improved 7%, said LIMRA.
The top 10 carriers, which account for three-quarters of total new disability insurance premium, drove overall growth with a 3% gain last year.
Supplemental health product new premium totaled $686 million during the fourth quarter, a decrease of 2% year over year. This category includes critical illness, accident, cancer and hospital indemnity insurance products.
The fourth-quarter drop was offset by strong performance in the first three quarters of 2024, which kept overall sales positive for the year. New premium grew 8% for the year to $3.3 billion. Three-quarters of supplemental health carriers posted gains last year, said LIMRA.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
