New Eastbridge report examines growing hospital indemnity insurance market

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Oct 13, 2022, 08:00 ET

Report shows increasing competition, rapid change in hospital and supplemental medical products

AVON, Conn., Oct. 13, 2022 /PRNewswire/ -- More carriers than ever are offering hospital indemnity insurance, with significant sales growth fueled at least in part by an increased awareness of the need for coverage due to the pandemic.

That's one of the findings in Eastbridge's new Voluntary Hospital Indemnity and Supplemental Medical Products Spotlight™ Report. The report examines the current voluntary hospital indemnity and supplemental medical market based on survey data from 26 voluntary benefit carriers and 29 different hospital/indemnity plans.

Sales were up 9% last year, hitting a record high $780 million. To stay competitive in this growing market, many carriers are focusing on flexibility, the report shows.

"For many carriers, a flexible product means not only expanding the type of benefits covered and dollar amounts paid, but also flexibility in terms of underwriting guidelines, claims payment and pricing," said Danielle Lehman, Eastbridge senior consultant. "Carriers also report a demand for both HSA and non-HSA compatible plans."

Other key findings in the report include:

Group products dominate the market. Of 29 plans profiled in the report, only three are individual products, and all but one of the 10 new plans introduced in the last five years are group products.
Guaranteed issue underwriting has become the norm. Nearly all the plans profiled offer coverage without asking medical questions to determine eligibility.
Market demand is driving coverage for more conditions. More carriers are covering mental health, substance abuse, newborn care and observation unit stays.

Information about purchasing the Voluntary Hospital Indemnity and Supplemental Medical Products Spotlight™ Report is available on Eastbridge's website. Those interested can email [email protected] or call (860) 676-9633.

About Eastbridge Consulting Group

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn at https://www.linkedin.com/company/eastbridge-consulting-group.