JHA announced the results of the 2003 U.S. Group Disability Market Survey, an industry benchmark survey covering STD and LTD sales and inforce premium. Thirty-seven group disability insurance carriers participated in the 2003 survey, representing more than 95 percent of the U.S. insured group disability market.
In 2003, U.S. group disability inforce premium (STD and LTD) grew approximately 6 percent over 2002, reaching just over $10 billion. Participating companies reported a 6 percent increase in LTD inforce premium, and a 7 percent increase in STD inforce premium. Compared to 2002, the number of employers offering STD and LTD coverage remained relatively unchanged. The total number of insured employees grew at a level similar to 2002 results, at 3 percent for STD and 1 percent for LTD.
According to the survey, 2003 U.S. group disability sales (STD and LTD) reached more than $1.9 billion in new annualized premium, an 8 percent increase over 2002. Growth in STD sales increased 11 percent, while LTD sales grew by 6 percent.
Further analysis shows that the top 10 carriers’ share of the market has decreased slightly. The top ten companies wrote 75 percent of new STD and LTD business in 2003. The share of inforce premium for the top ten companies was 76 percent for STD and 80 percent for LTD.
“The two primary factors driving growth in 2003 were strong STD and Voluntary LTD sales. The industry continues to face challenges in their effort to increase the number of employers offering group disability coverage to their employees,” said Drew King, president of JHA.
The annual JHA U.S. Group Disability Market Survey tracks and reports sales and inforce premium, for both traditional and voluntary disability products. In addition, the survey covers renewal activity, lapse rates and Administrative Services Only (ASO) business, and the distribution environment. Participating companies receive the full report.
To obtain a summary of the U.S. Group Disability Market Survey results, visit JHA’s Web site at www.jhaweb.com.
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