According to a biennial study by Eastbridge Consulting Group Inc., insurance carriers in the voluntary benefit market identified critical illness (CI), disability insurance, and limited-benefit medical plans as their top three growth products for 2006. The change reflects a comeback for CI insurance, which had declined in recent years.
According to Eastbridge Vice President Bonnie Brazzell, there was a decrease in the number of carriers that chose universal life as a top growth product -- just 11 percent (down from 60 percent in 2004). In addition, significantly fewer companies chose term life as a growth product. Term sales fell from 29 percent in 2004 to 16 percent in 2006.
Many respondents also said accident and dental plans were among the fastest growing products for their companies this year. Following CI were supplemental medical (gap) insurance at 53 percent and limited benefit medical at 34 percent.
"While there is a slight difference in this year's list of industry growth products compared to the list from 2004, the most notable difference is the lack of consensus among the carriers," Eastbridge President Gil Lowerre said. "The list of top three products varied significantly from carrier to carrier. In fact, CI was the only product named by more than half of the carriers as an industry growth product."
