As Demand for Accident Insurance Rises, More Organization Recognize Its Value

 Submitted by Melanie Cannon
Vice President, Worksite
Amalgamated Life Insurance Company

For affinity marketers looking to better serve their current membership and attract new members, a closer look at the latest insurance trends is prudent. Some products such as accident insurance have been growing steadily in popularity. This is possibly an outgrowth of the pandemic; which made more consumers aware of the importance of supplemental insurance. Employers, plan sponsors and association/affinity group leadership too are realizing that meeting employees’/members’ demand for a variety of voluntary products and services is an effective strategy for improving program visibility and attracting and retaining members. A closer look at accident insurance trends may demonstrate this.

Accident Insurance Trends

Industry observers cite a changing marketplace when it comes to accident insurance. Not only has COVID-19 heightened consumer awareness of its value, but insurers are adapting their policy terms and product marketing to reflect growing demand. For instance, accident insurance is more regularly being offered as part of insurers’ voluntary benefits suite. According to the industry research group, LIMRA, these workplace benefits saw an increase in 2021. In the third quarter of 2021 alone, accident insurance sales recorded a 18% increase over the same period in 2020. Some insurers are expanding their accident policies to include benefits for testing and immunizations, providing coverage for gig employees, and expanding their geographic coverage areas to beyond the United States and its territories to include international work assignments and adventure travel.

In marketing accident insurance policies, insurers are relying heavily on digital communications such as interactive explainer videos, mobile apps, and online portals where brokers can access product information at anytime from their PCs, tablets and mobile phones. As insurers, brokers and agents see the increasing growth potential for accident insurance, they are developing stronger sales and marketing strategies that clearly communicate the product’s value proposition. LIMRA’s Life After COVID – Employees’ Views on Life Insurance report sheds further light on the insurance landscape.

Data That Matters

For employers and association leaders, knowing what matters to your current and future employees/members is essential. While many organization leaders are becoming more enlightened with respect to their constituents’ needs, there still remains a wide gap as revealed in the LIMRA Life After COVID…report. Here is some data that reflects this:

  • Due to COVID-19, 26% of employers of all sizes surveyed dropped an employment-based life insurance benefit. For organizations with 20 to 99 employees, the percentage was highest at 45%, followed by organizations with 100 to 499 employees - 40%, organizations with 10 to 19 employees - 17%, and organizations with 500 or more employees - 13%.

To be fair, organizations also added insurance benefits due to COVID. 

  • Overall, 41% of employers of all sizes added an insurance benefit breaking down as follows: 48% of employers with 10 to 19 employees, 35% of employers with 20 to 99 employees, 30% of employers with 100 to 499 employees and 19% of employers with 500 or more employees.

When asked, what percentage of their employees will have accident insurance coverage five years from now, the LIMRA study found that:

  • 37% of employers said their employees will be extremely or very interested in this coverage.

In addition to the LIMRA study’s findings, data from the Centers for Disease Control and Prevention (CDC) too should prompt greater awareness as to the importance of accident insurance in providing vital financial protection. The CDC reported that:

  • Based on data provided by the National Ambulatory Medical Care Survey: 2018 National Summary Tables, in 2018, there were 24.8 million physician office visits for unintentional injuries.
  • The same survey found that there were 97.9 million emergency department visits for unintentional injuries.
  • The National Vital Statistics System – Mortality Data (2020) reported 200,955 unintentional injury deaths.

Insurance Marketing Benefits Associations

Member organizations can support their members by becoming more proactive in their offering of in demand insurance products such as accident insurance. Members gain access to an insurance solution that has already been vetted by the association, are more competitively-priced than would be on the individual market due to group buying power. This benefit can include family coverage, does not require any health questions or pre-existing condition restrictions and can be easily enrolled through the membership portal.

For the association, there also are financial benefits to be gained. Offering more reasons for individuals and/or organizations to join the association drives increased membership-related revenues. This gives the association added funds to support its broader goals and agenda. Overall, it’s a winning strategy to support growth.

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