Mortality shows improvement in new group life study

NEW ORLEANS – A new study from LIMRA and the Society of Actuaries Research Institute finds improved mortality in the group life segment.

The 2024 Group Term Life Experience Study, released in December, collected data from insurers for group term life insurance policies in-force from 2013 to 2021. Results were compared to the previous 2016 group term life study, which used a study period of 2010 to 2013.

Pete Miller, actuary, experience studies, with the Society of Actuaries; and Matt Sawyer, vice president at Gallagher Re, shared the study during the 2025 Life and Annuity Conference.

Group life is akin to individual life insurance and is about 30% to 40% lower mortality than the U.S. population, Sawyer explained.

Work is 'really good predictor of mortality'

"Being able to go to work is a really good predictor of mortality," Sawyer said. "So, that's a really fundamental thing that we look at."

Sixteen companies contributed data to the study, which encompasses over 100 million exposures by headcount, over 186,000 life insurance claims, and over 39,000 incidences of premium waiver from 2013 to 2021.

The A/E ratio compares the actual number of deaths (A) within a specific population or portfolio to the number of deaths expected (E) based on a defined mortality table. Key findings of the study include:

• Basic life A/E ratios compared to the 2016 study were 93% on a headcount basis and 107% on an amount basis. Supplemental life A/E ratios compared to the 2016 study were 108% on a headcount basis and 114% on an amount basis.

• Excluding the pandemic years of 2020 and 2021, Basic life A/E ratios were 88% on a headcount basis and 100% on an amount basis. Supplemental life A/E ratios were 102% on a headcount basis and 107% on an amount basis.

• Waiver of premium incidence rates declined significantly compared to the 2016 study for basic life; A/E ratios were 77% on a headcount basis and 84% on an amount basis. For supplemental life, results were closer to the 2016 study, as A/E ratios were 95% on a headcount basis and 108% on an amount basis.

• Basic coverage accidental death and dismemberment A/E ratios were 121% on a headcount basis and 117% on an amount basis. Supplemental coverage AD&D A/E ratios were 143% on a headcount basis and 141% on an amount basis.

• Portability A/E ratios compared to the 2016 study were 88% on a headcount basis and 113% on an amount basis.

'Sounds like you have improved mortality'

The topic of mortality is now heavily politicized, with many groups believing the COVID-19 vaccine contributed to elevated deaths that continue to be seen in some studies. The world's top health experts debunked those theories.

Still, troubling increases in certain ailments and diseases, along with rising health care costs, have worried some insurers and led to major losses in stop-loss coverage for several companies. Self-funded employers rely on stop-loss insurance to mitigate the financial risk of large claims, but as medical expenses grow, insurers may face higher payouts, affecting their profitability.

Near the end of their 35-minute presentation, the actuaries were asked point-blank what the study concluded vis-a-vis mortality.

"So, it sounds like you have an improved mortality versus 2016 with or without COVID?"

"Yes," Sawyer responded.

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