1 articles · Updated · Insurance Business · Aug 21
Summary
LIMRA's first 2026 read showed new dental subscribers up 15% year to date in Q1, the clearest sign yet that parts of the workplace ancillary market are rebounding after 2025's pullback.
That recovery follows a broad 2025 slowdown: Q1 workplace life premium fell 16% to $1.8 billion, disability dropped 15% to $1.6 billion, and supplemental health slid 11% to $1.3 billion after four record years.
LIMRA says the drag is less about demand than affordability, with healthcare costs projected to rise 8% in 2026 and employers increasingly shifting focus from talent attraction to cost control.
Employer interest in benefits still remains high — 84% say benefits are critical for attracting and retaining workers — but workers are trimming elections and changing jobs less often in a cooler labor market.
The mixed picture points to a reset rather than a lasting decline, with product lines recovering at different speeds even as carriers and brokers keep investing in ancillary benefits.