Published: April 22, 2009
JHA Announces 2008 U.S. Group Life and Disability Market Survey Results
(BUSINESS WIRE)
JHA is pleased to release the results of the
2008 U.S. Group Life
Market Survey and the
2008 U.S. Group Disability Market Survey. These
leading industry benchmark surveys cover Group Term Life, Short Term
Disability (STD), and Long Term Disability (LTD) inforce and sales
premium results for 2008. Thirty-five insurance carriers participated in
the Life Survey, and 30 carriers participated in the Disability Survey.
Participating carriers reported that Total Group Term Life inforce
premium increased 5% in 2008 to just over $19 billion. Group Disability
(STD and LTD combined) inforce premium grew approximately 4%, reaching
$13.4 billion, with STD inforce premium increasing 6% and LTD increasing
4%.
For Group Term Life, STD, and LTD, the total number of employers
offering coverage increased slightly (less than 1%) compared to 2007.
The total number of insured employees increased by just over 3% for
Group Term Life and LTD, while STD increased 4%.
Group Term Life sales rebounded in 2008, reaching $2.2 billion, a 9%
increase over last year. Volume rose as well, with participating
companies reporting an 11% increase compared to 2007. Correspondingly,
the average face amount on new Group Term Life policies increased by
10%, reaching over $69,000.
Combined Group Disability sales (STD and LTD) were down by 5% compared
to 2007, totaling $2.1 billion in new annualized sales premium. The
decrease appears to be driven by LTD sales, which declined by 7%, while
STD sales increased by 2%.
"Across all products, inforce premium continued to show respectable
growth, which is a positive sign given the economic environment last
year," said Drew King, President of JHA. "Sales results in 2008 were
mixed. The decrease in group LTD sales, especially Voluntary LTD, may be
an indication of changes in employer and employee purchasing behaviors
as a result of the recession."
To obtain a summary of either Survey, visit JHA's website at www.jhaweb.com.
Participating companies receive the full report.
JHA is the Disability and Group Life reinsurance, risk management and
research division of General Re Life Corporation. Headquartered in
Portland, Maine, JHA offers its clients reinsurance solutions and
consultative support in the areas of underwriting, risk management,
pricing, valuation, claim management, marketing, distribution and
product development.
Through its research practice, publications and industry events, JHA
is the leading source for information and insight about the Disability
and Group Life markets.
General Re Life Corporation conducts business as Gen Re LifeHealth,
and is a Berkshire Hathaway Company.
JHA
Marcy Updike, 207-874-2261 x126
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