A survey by consulting organisation LIMRA
International has revealed a potential bonanza awaiting insurers in
the US worksite marketing channel. The potential lies in up to
363,000 businesses with ten or more employees considering
introducing a new voluntary benefit within the next two years, a
development that would encompass up to 45 million employees.
“Even though worksite marketing is a
well-established distribution channel, there are still
opportunities for growth; our research shows that many workers
still do not have access to voluntary benefits,” said Ron Neyer, a
LIMRA senior analyst. He added that while most employers with 1,000
or more employees offer at least one voluntary option, about half
of these companies are considering adding more.
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Employers are most interested in adding dental insurance, followed
in popularity by vision plans and supplemental medical products.
“But employers are also expressing interest in several other
benefits including medical, disability (short- and long-term), and
life insurance coverage,” said Neyer. “This suggests a strong
opportunity for providers to market numerous product lines and
underscores the current diversity of employers’ existing benefit
portfolios.”
A study by research company Eastbridge Consulting underpins LIMRA’s
optimism. According to Eastbridge, worksite disability product
sales grew to $818 million, a 25 percent increase compared with
2005.
