The economy took its toll on the individual disability insurance market last year, according to a new survey from JHA.
Drew King
The South Portland, Maine-based company’s survey, involving 15 carriers, provides information on non-cancelable (non-can), guaranteed renewable (GR), buy-sell (buy-sell) inforce and sales premium for 2009.
“It’s clear that the individual disability income market was negatively impacted by the recession in 2009,” said Drew King, president of JHA, in a statement. “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.”
Total inforce premium from participating carriers remained stable in 2009, totaling nearly $4.3 billion. Non-can and GR inforce premium increased 1.1%, to $3.8 billion and $427 million, respectively. Buy-sell inforce premium was flat, decreasing 0.1% to $73.6 million.
The number of inforce policies declined about 2% last year, when compared to 2008, with a decrease of 1.6% for non-can and GR policies and a 3.3% increase for buy-sell policies.
Total individual disability insurance sales premium was 11% lower than in 2008, totaling $339 million in 2009. Non-can declined 11.5%, GR fell 7.4% and Buy-Sell dropped 15.5%.
The total new policies also fell about 11%, with non-can policies sliding 12.2%, GR dropping 4.6%, and buy-sell slipping 9.6%.
JHA is the disability and group life reinsurance, risk management and research division of General Re Life Corp. General Re Life Corporation conducts business as Gen Re LifeHealth, and is a Berkshire Hathaway Company.
Individual disability insurance market ‘challenged’ last year via IFAwebnews .
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