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PORTLAND, MAINE: JHA has released the results of its 2006 U.S. Individual
DI Market Survey. This industry survey captures Non-Cancelable (Non-Can),
Guaranteed Renewable (GR), and Buy-Sell sales and inforce premium results for
approximately 90% of the U.S. individual disability insurance market. Sixteen
individual disability carriers participated in the 2006 survey.
U.S. individual disability inforce premium (Non-Can, GR, and Buy-Sell) grew
approximately 4% in 2006, reaching over $4.1 billion. Participating companies
reported a 3.6% increase in Non-Can inforce premium, and a 4.5% increase in GR
inforce premium. According to the survey, the number of existing policies
remained flat; Non-Can inforce policies increased just 0.4%, while GR decreased
0.4%. Benefit amounts for Non-Can increased 4.2% compared to 2005, while GR
benefit amounts increased 3.9%.
Survey results also indicate that 2006 U.S. individual disability sales
(Non-Can, GR, and Buy-Sell) increased approximately 1%, reaching over $321
million. Non-Can sales were fairly flat, increasing 0.6%, while GR sales
increased 2.4%. The U.S. individual disability business continues to be
dominated by Disability Income versus Overhead Expense types of policies. For
Non-Can, Disability Income accounted for 95% of new sales while Overhead
Expense accounted for 5%. For GR, Disability Income accounted for approximately
98% of 2006 new sales premium while Overhead Expense only accounted for 2%.
“While overall new sales were up slightly for the industry, the total number of
new policies issued declined for the second straight year”, said Drew King,
President of JHA. “Sales growth is being driven by increasing benefit amounts,
especially among medical occupations.”
The JHA 2006 U.S. Individual Disability Income Market Survey features both
sales and inforce premium information. Participating companies receive the
comprehensive report.
JHA, a subsidiary of General Re Life Corporation (a Berkshire Hathaway Company)
is a disability reinsurance, market research, and consulting firm located in
Portland, Maine. Since 1986, JHA has been helping its clients manage disability
insurance risk and 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 insurance market.
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