The Latest Data on U.S. Workplace Supplemental Health Insurance
LIMRA recently published its “U.S. Workplace Supplemental Health Insurance 2023 First Quarter Review.” It contains some interesting findings based on its survey of 38 companies which represent over 90% of the workplace supplemental health insurance market. Here are some of the highlights from the LIMRA report.
- For Q1 of 2023, participating companies reported a combined total of nearly $1.2 billion in new annualized premiums for accident, critical illness, cancer, hospital indemnity, and other supplemental health insurance products. This figure is 2% less than Q1 2022.
- Cancer (up 13%) and hospital indemnity insurance (up 3%) sales increased in Q1 2023, while accident sales were flat, and critical illness (down 8%) and other supplemental health insurance products (down 5%) sales decreased.
- 86% of all new supplemental health premiums were derived from the sale of group workplace products, and 14% were from the sale of individual worksite products. It is typical that group products’ market share is higher during the first quarter of a year as that is when the majority of group sales are sold with an effective 1/1 date.
- Group workplace supplemental health products recorded new premium losses of 3% when compared to Q1 2022, while individual worksite new premium showed an increase over last year of 11%.
Based on industry data, almost 50% of all American workers consider supplemental benefits to be a critical component of a comprehensive benefits program. More than half of American workers are interested in purchasing supplemental benefits, with accident, hospital and dental among the most important to them. Finally, almost 80% of employers who offer supplemental benefits believe they help with their employee recruitment and retention efforts.
