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What’s newsworthy in accident insurance

Top 3 trends to watch in 2023

We’ve all heard of happy accidents, but falling and breaking a leg is not what most people would ever consider happy.

According to the Centers for Disease Control and Prevention, an estimated 35 million Americans visit the emergency room because of not-so-happy accidents each year.1

The current state of accident insurance

So it makes sense that more employers are offering accident insurance. In fact, this voluntary benefit, which provides a lump-sum cash payment for an accident covered under the policy, has grown from 37 percent in 2018 to 65 percent in 2022.2

According to a 2022 Workforce Benefits Employer Benchmarking Study by LIMRA, the average participation rate for eligible employees getting accident insurance coverage is 49 percent.3

Here are three trends that make the benefit more valuable than ever:

1. Technology is here to stay

Say hello to a better overall accident insurance product with the help of some significant advancements in technology. With work-from-home-or-anywhere-but-the-office numbers higher than ever, online capabilities such as enrollment systems are evolving to become cutting-edge.4

The pandemic has created a lack of face-to-face meetings, which in turn, has produced a need for more dynamic digital marketing materials and videos. Communications remain primarily digital, audio, video and solo, with group meetings in an office a relic, insurers say.5

And artificial intelligence (AI) has the potential to take insurance from its current state of “detect and repair” to “predict and prevent,” transforming every aspect of the industry.6

2. Employer-funded defined contribution

Here’s a concept: Let employees decide which benefits best meet their needs.

Employees can choose which benefits are most important to them with an employer-funded defined contribution (also called a “shopping spree”). They can choose from the usual four benefits (dental, vision, life and disability) to voluntary benefits like accident insurance.7

3. Evolving and expanding

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.8

Accident insurance has grown as an alternative to workers’ compensation for uncovered part-time or contract workers. While most employees are covered under state mandated workers’ compensation insurance, few contract or gig workers are covered.5

As part of an integrated approach to supplemental health benefits, accident coverage continues to evolve to meet the needs of consumers. For example, things like telemedicine and therapy services for cognitive behavioral events are now covered by some providers.9

Interested in group accident insurance?

Read about what Securian Financial offers.

Learn more

1. Centers for Disease Control and Prevention. Emergency Department Visits. U.S. Department of Health & Human Services, 2021.

2. "2021 Emerging Trends in Health Care Survey." Willis Towers Watson survey report, May 27, 2021.

3. LIMRA, “Facing the Pandemic Challenge: Trends in the Employee Benefits Market.” November 11, 2022.

4. Rooney, Kayla. "U.S. Supplemental Benefits Remain Strong Throughout the Pandemic." GenRe Perspectives, November 30, 2021.

5. Strazewski, Len. “Accident insurance trends.” The Rough Notes Company, March 30, 2022.

6. Balasubramanian, Ramnath, Libarikian, Ari and McElhaney, Doug. "Insurance 2030—The impact of AI on the future of insurance." McKinsey & Company, March 12, 2021.

7. Silverman, Eric, McNeil, Andrew and Avila, Rosario. "3.5 not-so-voluntary trends that will continue in 2021 and beyond." BenefitsPRO, February 9, 2021.

8. Cannon, Melanie. "As Demand for Accident Insurance Rises, More Organization Recognize Its Value." Inter-Company Marketing Group (ICMG), 2022.

9. Strazewski, Len. "Accident Insurance in 2021: Benefit Can Deliver Value in a Bundle or on its Own." The Rough Notes Company, February 25, 2021.

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