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CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- The clear shift in how employee benefits are delivered in the workplace today is reflected in Unum's (NYSE: UNM) expanding coverage options and strong sales results for employee-selected insurance. Over the past 10 years, Unum's traditional voluntary benefits business has grown from just about $150 million to over $540 million, an average annual growth rate of close to 15 percent. And despite the economic recession, this business grew 8 percent for Unum in 2009 compared to the overall voluntary market that saw little, if any, growth.

Over the past decade, Unum has strengthened its position as an employee benefits leader by managing 10 product introductions to its voluntary portfolio. These included new offerings that focus on supplementing a group medical plan, as well as enhancements to existing products.

The growth of voluntary benefits has been fueled by changes and demand from all sides of the benefits equation.

"Driven by significant increases in health care costs and a challenging economic environment, businesses are under pressure to stabilize their benefits costs without sacrificing the breadth of coverage they provide to employees," said Unum Senior Vice President Mike Simonds. "At the same time, the employee population has become more diverse than ever, which means they want and need a greater variety of benefit choices to fit their needs at that point in their lives."

Voluntary benefits - coverage offered through the workplace for employees to select as they choose - have become a reliable way for employers to offer broad benefits choice to employees while controlling costs through flexible funding options.

"Across the country, employers are adjusting to the economic pressures by re-evaluating the benefits they offer to employees, particularly in health and medical coverage," said Stephanie Smith, director of voluntary benefits at Unum. "The right mix of voluntary benefits with traditional group coverage can help a business manage its costs and give employees access to the coverage options that are right for them."

Unum's sales trends show that insurance products that can help ease the burden of medical expenses are particularly popular. In the past three years alone, Unum's growth has been significant for accident insurance (45 percent), short term disability coverage (22 percent) and critical illness benefits (9 percent).

"The American Journal of Medicine reported 62 percent of bankruptcies in 2007 were caused by medical debt," Smith said. "Accident and critical illness insurance, in particular, are designed to help offset the medical costs that aren't covered by health plans."

Simonds adds that health care changes, some of which are accelerated by reform legislation, will drive continued strong growth in voluntary going forward.

The employee benefits industry as a whole has seen an uptick in the demand for worksite benefits. According to Eastbridge Consulting Group, employees have spent an additional $13.8 billion in voluntary benefits over the past 10 years, and the industry itself has seen close to a 12 percent annual average growth in voluntary premiums over a 10-year period.

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2009.

    Source: Unum