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PORTLAND, MAINE: JHA has released the results of the 2006 JHA U.S. Group
Disability Mid-Year Market Survey. This leading benchmarking
survey reports group Long Term Disability (LTD) and Short Term Disability (STD)
insured sales and earned premium results for the first half of the year. The
thirty-two group disability carriers participating in the survey include all of
the top twenty carriers, as ranked by inforce premium in the full-year 2005 JHA
U.S. Group Disability Market Survey.
Survey results indicate that combined U.S. group disability
mid-year sales premium (LTD & STD) decreased by 11% compared to mid-year
2005, to just over $1.1 billion. New sales premium for LTD was down 11%
to just under $778 million, while new STD sales decreased 12%, to approximately
$355 million.
Total combined group disability (LTD and STD) earned premium
at mid-year reached almost $5.8 billion, an increase of 5%. The total
number of insured employees grew by approximately 3% for LTD and 5% for STD.
The top ten carriers held a market share of 82% of new LTD
sales premium and about 73% of new STD sales premium at mid-year 2006, a
decrease from a year ago.
“A number of carriers saw a decrease in both their STD
and LTD sales premium for the first half of this year as compared to the first
half of 2005. It appears that more companies are moving down market, as
the average case size decreased by approximately 20%. Earned premium for
both STD and LTD continued to show slow, but steady, growth.” said Drew King,
President of JHA.
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.
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