Sales of U.S. workplace supplemental health insurance products totalled US$2.1 billion in the first nine months of 2022, rising 11 per cent year over year, according to a new survey by LIMRA.
It also found workplace supplemental health insurers reported a combined total of $453 million in the third quarter of 2022, three per cent higher than the same period in 2021.
New premiums sales for both group and individual workplace supplemental health products also increased in the third quarter, up two per cent and five per cent, respectively. During the first nine months of 2022, group supplemental health product premiums rose 12 per cent, while individual products increased eight per cent.
Sales of new workplace disability insurance premiums totalled $560 million in the third quarter, a year-over-year increase of three per cent. Long-term disability insurance premiums drove overall growth in the quarter, up six per cent, while short-term disability premiums were up one per cent for the quarter.
In terms of life insurance, new premiums totalled $630 million in the third quarter, down six per cent from last year. In the first nine months of 2022, sales of new U.S. workplace life insurance premiums totalled $3 billion, down one per cent from the same period in 2021.
“In 2021, we saw several large employer sales, which is hard to replicate year over year,” said Patrick Leary, corporate vice-president and director of LIMRA’s workplace benefits research program, in a press release. “We are, however, seeing more sales among small- and mid-size employers that held off making changes to their benefits during COVID.”