PORTLAND, MAINE:  JHA released the results of the 2005 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. Twenty-nine group disability insurance carriers participated in the 2005 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 2005, reaching $11.2 billion.  Participating companies reported a 7% increase in LTD inforce premium, and a 4% increase in STD inforce premium, similar to last year’s reported results.  The number of employers offering disability coverage increased slightly at 4% for STD and 3% for LTD.  The total number of insured employees rose by 1% for STD and 4% for LTD.

Survey results also indicate that 2005 U.S. group disability sales (STD and LTD) increased by 3%, totaling over $1.9 billion in new annualized premium.  While STD sales premium remained relatively flat with a 1% increase, new LTD sales premium showed an increase of 4% in 2005.

The U.S. group disability marketplace continues to be dominated by the top ten carriers. In fact, the top ten companies wrote 76% of new STD business in 2005, and almost 83% of new LTD business, similar to last year, when the top ten carriers wrote 77% and 82% of new sales, respectively, for STD and LTD.

“Group disability industry sales showed some modest improvement in 2005, with LTD leading the way,” said Drew King, President of JHA.  “Inforce premium rose at a steady pace once again, a positive sign that the market continues to focus on taking the appropriate renewal actions.”

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.