Sales of U.S. workplace supplemental health products totalled nearly US$1.3 billion in new annualized premiums in the first quarter of 2024 ― a three per cent increase year over year, according to a new report by LIMRA.

It found major product lines of accident, critical illness and hospital indemnity insurance combined grew four per cent from the first quarter of 2023, accounting for 94 per cent of all new supplemental health premiums.

Group workplace and individual worksite sales held 88 per cent and 12 per cent in new premium market share, respectively. Group workplace supplemental health products also grew four per cent, while individual worksite sales fell one per cent year over year.

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Total workplace disability insurance new premiums were $1.7 billion, a year-over-year decrease of 12 per cent. As well, short-term disability insurance new premiums fell 17 per cent and long-term disability insurance premiums fell six per cent.

Total workplace life insurance new premiums reached nearly $2 billion, down two per cent. Group life premiums also fell two per cent, while individual life sales increased two per cent. Voluntary term new premiums declined seven per cent in the quarter, while voluntary permanent product new premiums increased three per cent.

“Seventy per cent of employers said their company’s benefits package will be critical to attracting and retaining the best workers over the next few years,” said Patrick Leary, corporate vice-president and director of LIMRA’s workplace benefits research program, in a press release.

“More than half (51 per cent) of employers believe their company will be offering more benefits in the future to compete for the best talent. As a result, LIMRA expects workplace benefits sales growth to continue to be strong in 2024 and 2025.”

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