Gen Re Provides 2012 U.S. Group Disability and Group Life Mid-Year Market Survey Results [Health & Beauty Close – Up]

Gen Re announced that it has released the results of the 2012 U.S. Group Disability and Group Life Mid-Year Market Survey.

According to a release, this industry benchmark survey covers Traditional/Basic and Voluntary Group Life, Short Term Disability (STD), Long Term Disability (LTD) sales and earned premium for the first half of the year.

Thirty-one carriers participated in the survey, representing approximately 95 percent of the Group Disability market and over 85 percent of the Group Life market. Participating companies reported a combined earned premium for all products of $17.5 billion for mid- year 2012, and a combined annualized new sales premium of $2.8 billion. For all products combined, sales premium increased by roughly 4 percent, and earned premium grew by 3 percent compared to the same time period in 2011.

Group Life annualized sales premium reached just under $1.5 billion halfway through 2012, representing a 1 percent increase compared to mid-year 2011. LTD new sales premium grew by 7 percent, with carriers reporting a total of $857 million in premium for the first half of the year. However, the highest level of growth came from STD new sales, with an 11 percent increase over the same time period in 2011, reaching $419 million in reported sales premium.

The company noted that, from a new sales perspective, growth in the number of employers declined by 3 percent for Group Life, versus the same time period last year. LTD and STD sales showed an increase in the number of employers, by 4 percent and 6 percent, respectively.

For carriers reporting Total Group Life results, earned premium increased by 3 percent compared mid-year 2011, reaching over $10.5 billion. LTD earned premium grew by 2 percent, with nearly $5.1 billion reported, while STD rose by 4 percent, totaling close to $1.9 billion in earned premium at mid-year 2012.

"Despite stubbornly high unemployment and inconsistent job creation, we're seeing some modest growth across all lines in the group market at mid-year 2012," said Drew King, SVP of Group & Specialty Reinsurance at Gen Re. "Sales growth is being driven by large employers switching carriers, especially in STD and LTD, so we'll have to wait and see how big a role this 'churn' plays in the total year results."

Gen Re, a Berkshire Hathaway Company, is a property/casualty and life/health reinsurer.

More Information:

genre.com

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