3 minute read
Supplemental Health Products Step Into Limelight
Life and disability insurance are the perennial divas of the voluntary benefits marketplace, but they’re far from the only players on the stage. Supplemental health products including hospital indemnity, accident and critical illness are taking more active roles in many employee benefits packages. These plans got a boost during the pandemic, as more people saw the importance of the protection they provide, and that strong growth is continuing.
Carrier Perspective
Accident, critical illness and hospital indemnity were three of the top six best-selling products last year, according to Eastbridge’s recent “US Voluntary/Worksite Sales Report,” at levels rivaling ever-popular short-term disability and dental insurance. In fact, supplemental health products as a whole hold a larger market share (33%) than life insurance (30%).
Employer Perspective
Nearly a half or more of all employers offer supplemental health products to their employees, according to Eastbridge’s 2022 “MarketVision™ The Employer Viewpoint©” study. Most often these benefits are available on a 100% voluntary, employee-pay-all basis. A significant percentage of employers share the cost of coverage with their employees, but very few pay the entire premium for them.
Employee Perspective
Employee ownership of and interest in buying supplemental health products shows a significant market opportunity. According to the most recent “MarketVision™ - The Employee Viewpoint©” study, about a quarter or fewer employees own hospital indemnity/supplemental medical (28%) or critical illness (24%) insurance on any funding basis. Ownership of accident coverage is higher, but still less than half (44%) of all employees. However, about half of those who don’t already have these products are interested in buying them on a voluntary, 100% employee-paid basis. Comparing non-ownership and interest creates a buying interest index and supplemental health products have some of the highest scores of any employee benefit.
Broker Perspective
Supplemental health plans are among the top five voluntary products brokers sell, according to this year’s “Rising Tide for Brokers in Voluntary Business” Spotlight™ report - Critical illness ranks number one for benefit brokers, while accident ties for number two. The order flips for voluntary brokers, with accident first and critical illness tied for second.
If supplemental health products aren’t already part of your benefits package or marketing portfolio, it might be time to consider raising the curtain on them. You may not get a standing ovation, but you could increase your sales, customer satisfaction and employee retention.
Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter. For over 25 years, they have built the industry’s leading data warehouse and industry-specific consulting practice. Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge.
