JHA Announces 2009 U.S. Individual Disability Income Market Survey Results

SOUTH PORTLAND, Maine--(BUSINESS WIRE)-- JHA is pleased to release the results of the 2009 U.S. Individual Disability Market Survey. This leading annual industry benchmark survey covers Non-Cancelable (Non-Can), Guaranteed Renewable (GR), and Buy-Sell inforce and sales premium results for 2009. Fifteen individual disability carriers participated in survey.

As reported by participating carriers, total inforce premium (Non-Can, GR, and Buy-Sell) remained stable in 2009, totaling nearly $4.3 billion. Non-Can and GR inforce premium results were flat, increasing 1.1%, to $3.8 billion and $427 million, respectively. Buy-Sell inforce premium was flat, decreasing 0.1% to $73.6 million.

Compared to 2008, the total number of inforce policies declined about 2%. The total number of inforce policies declined across all three product lines — 1.6% for Non-Can and GR, and 3.3% for Buy-Sell.

Total IDI sales premium was 11% lower than in 2008, totaling $339 million in 2009. By product, Non-Can declined 11.5%, GR fell 7.4% and Buy-Sell declined 15.5%. Total new IDI policies also declined about 11%. By product line; Non-Can policies fell 12.2%, GR fell 4.6%, and Buy-Sell fell 9.6%.

“It’s clear that the Individual Disability Income market was negatively impacted by the recession in 2009,” said Drew King, President of JHA. “Sales and inforce premium and policies were down, as potential buyers were challenged by tough economic conditions — layoffs, furloughs, salary freezes, etc. Carriers and producers will need to adapt to the current economic landscape in order to find new sources of growth."

To obtain a summary of the 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 South 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

Source: JHA