PORTLAND, MAINE: JHA released the results of the 2004 U.S. Group Disability Market Survey, a leading industry benchmark survey covering Short Term Disability (STD) and Long Term Disability (LTD) sales and inforce premium. Thirty-six group disability insurance carriers participated in the 2004 survey, representing over 95% of the U.S. insured group disability market.

U.S. group disability (STD and LTD combined) inforce premium grew approximately 6% in 2004, reaching $10.6 billion. Participating companies reported a 7% increase in LTD inforce premium, and a 5% increase in STD inforce premium. The number of employers offering disability coverage increased slightly at 4% for STD and 3% for LTD. The total number of insured employees remained flat for STD, while employees covered by LTD increased by 5%.

Survey results also indicate that 2004 U.S. group disability sales (STD and LTD) decreased by 1%, totaling nearly $1.9 billion in new annualized premium. While STD sales premium decreased by approximately 4%, new LTD sales premium remained flat as compared to 2003.

The top ten carriers continue to dominate the U.S. group disability marketplace. The top ten companies wrote 77% of new STD business in 2004, and almost 82% of new LTD business, an increase from last year, when the top ten carriers wrote 75% of both STD and LTD new sales.

"Group disability industry sales were mixed in 2004, with some companies up and others down, producing overall growth near zero", said Drew King, President of JHA. "Inforce premium grew at a moderate rate, driven by wage inflation, renewal actions, and better persistency."

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, Administrative Services Only (ASO) business, and the distribution environment. Participating companies receive the full report.

JHA, a subsidiary of General Re Life Corporation (a Berkshire Hathaway company), is a disability reinsurance, consulting, and research firm located in Portland, ME. Since 1986, JHA has been helping insurers, TPAs, employers, brokers, and benefit consultants improve their disability business performance. Through its market research practice and consulting work, JHA is the leading source for information and data about the disability market.