Voluntary Benefits Sales Surge to Historic Highs, Indicating Growth in Employee Coverage
In a significant revelation, the Eastbridge Consulting Group's recent report indicates that sales of voluntary benefits have reached an all-time high in 2024. Continuing an upward trend, the total sales in this sector soared to approximately $9.53 billion, marking a 2% increase compared to the previous year, 2023. The in-force premium, which reflects the ongoing retention of these benefits by consumers, escalated even more sharply at a rate of 6.1%, establishing itself at an impressive $56.6 billion.
Nick Rockwell, the president of Eastbridge, noted, "While the growth in voluntary sales has moderated slightly compared to the explosive growth seen in the years following the pandemic, it remains on a positive trajectory." The increasing in-force premium indicates a broader recognition of the value of voluntary benefits among both employers and employees, as more individuals strive to secure additional financial protection.
The findings from Eastbridge's comprehensive 'U.S. Voluntary/Worksite Sales Report,' which aggregates data over the last two decades from 61 participating companies, provide an unprecedented insight into this niche market. This report, which covers the years 2000 to 2024, focuses primarily on sales related to group and individual life and health products, making it the most substantive source of information regarding current trends in voluntary benefits.
Notably, the report highlights that supplemental health products experienced the most significant sales growth, capturing the attention of both employers and employees. The critical illness policies saw sales spike by an impressive 13%, while hospital indemnity and supplemental medical products also witnessed a credible rise of 7%. In contrast, traditional voluntary benefits, such as life and disability insurance, remained relatively stable or even saw a marginal decline, signaling a shift in priority towards health-related coverages.
Group voluntary products remained dominant in the market, constituting a substantial 78% of total voluntary sales in 2024. Sales in this category rose by 3%, contrasting with individual sales, which saw a nominal decrease of 1%. It appears that larger corporations with more substantial employee bases, particularly those with 2,500 or more employees, achieved the highest sales growth at approximately 6%. Conversely, companies with fewer than 10 employees reported the sharpest decline in sales at 14%.
This trend could suggest that larger organizations are increasingly investing in the well-being of their workforce, recognizing that comprehensive voluntary benefits not only enhance employee satisfaction but also can lead to better retention rates. As employers navigate a competitive labor market, the ongoing commitment to providing valuable benefits packages appears essential to attracting and maintaining talent.
The Eastbridge study's participants receive detailed findings, including company-specific outcomes, highlighting the importance of this report in shaping industry comprehension of voluntary benefits dynamics. Firms interested in gaining further insights and potentially participating in next year’s study can reach out to Eastbridge via their contact information on their website.
Eastbridge Consulting Group, established as a pivotal marketing advisory firm, serves various companies focusing on the voluntary and worksite benefits market in the United States and Canada. For more updates and information regarding their insights, you can follow them on LinkedIn and other social media platforms.
Nick Rockwell, the president of Eastbridge, noted, "While the growth in voluntary sales has moderated slightly compared to the explosive growth seen in the years following the pandemic, it remains on a positive trajectory." The increasing in-force premium indicates a broader recognition of the value of voluntary benefits among both employers and employees, as more individuals strive to secure additional financial protection.
The findings from Eastbridge's comprehensive 'U.S. Voluntary/Worksite Sales Report,' which aggregates data over the last two decades from 61 participating companies, provide an unprecedented insight into this niche market. This report, which covers the years 2000 to 2024, focuses primarily on sales related to group and individual life and health products, making it the most substantive source of information regarding current trends in voluntary benefits.
Notably, the report highlights that supplemental health products experienced the most significant sales growth, capturing the attention of both employers and employees. The critical illness policies saw sales spike by an impressive 13%, while hospital indemnity and supplemental medical products also witnessed a credible rise of 7%. In contrast, traditional voluntary benefits, such as life and disability insurance, remained relatively stable or even saw a marginal decline, signaling a shift in priority towards health-related coverages.
Group voluntary products remained dominant in the market, constituting a substantial 78% of total voluntary sales in 2024. Sales in this category rose by 3%, contrasting with individual sales, which saw a nominal decrease of 1%. It appears that larger corporations with more substantial employee bases, particularly those with 2,500 or more employees, achieved the highest sales growth at approximately 6%. Conversely, companies with fewer than 10 employees reported the sharpest decline in sales at 14%.
This trend could suggest that larger organizations are increasingly investing in the well-being of their workforce, recognizing that comprehensive voluntary benefits not only enhance employee satisfaction but also can lead to better retention rates. As employers navigate a competitive labor market, the ongoing commitment to providing valuable benefits packages appears essential to attracting and maintaining talent.
The Eastbridge study's participants receive detailed findings, including company-specific outcomes, highlighting the importance of this report in shaping industry comprehension of voluntary benefits dynamics. Firms interested in gaining further insights and potentially participating in next year’s study can reach out to Eastbridge via their contact information on their website.
Eastbridge Consulting Group, established as a pivotal marketing advisory firm, serves various companies focusing on the voluntary and worksite benefits market in the United States and Canada. For more updates and information regarding their insights, you can follow them on LinkedIn and other social media platforms.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.