In an Article entitled “Eastbridge: Life Insurance Most Profitable Line”, published on the July 12, 2012 edition of, data is cited from the Eastbridge study: ” The Frontline Report, Worksite/Voluntary Product Trends 2012″ indicating that AD&D was ranked among the carriers surveyed as “very profitable” voluntary product (43% reporting).  Universal Life and Whole Life was cited as “very profitable”  at 41% and Term Life at 26%.  Several lines such as Long Term Disability, Cancer and Hospital Indemnity were not classified this year as “very profitable” and fell of that list.  The products cited as most unprofitable were Dental, Vision and Critical Illness.  Interestingly, in the same report Critical Illness was reported as having the greatest growth outlook for the next several years.  In addition it was reported that  both Critical Illness and Dental Insurance had the highest growth rate at 20% and 22% respectively.

As posted in the previous blog AD&D was one of the top 5 products for expected growth and it is reported as the highest profitable product line. This of course is of no surprise, but again for those of us in the professional association and affinity space, this is a line that by all accounts needs a refocus.  Understanding the acquisition cost may be too high to direct market–although the bank channels have been doing it for years, AD&D can be a tremendous cross sold product through “bill stuffers”,  point of sale, and at time of fulfillment.    The evidence is clear this is a growth product with great profitability, thus attractive for both the marketer as well as the underwriting company.

Do you have a success story with AD&D that you would like to share?

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