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Portland, ME, April 25, 2008 … JHA is pleased to release the results of the 2007
U.S. Group Life Market Survey and the 2007 U.S. Group Disability Market Survey.
These leading industry benchmark surveys cover Group Term Life (Basic Term Life
and Voluntary Term Life) and Short Term Disability (STD) and Long Term
Disability (LTD) inforce and sales premium. Thirty-two insurance carriers
participated in the Life Survey and 27 participated in the Disability Survey.
Total Group Term Life inforce premium, as reported by companies participating in
our survey, increased 3% in 2007 to just over $18 billion. Basic Group Term
Life still accounts for the majority of the total premium. Group Disability
(STD and LTD combined) inforce premium grew approximately 5%, reaching close to
$12.8 billion. Participating companies reported a 4% increase in STD inforce
premium, and a 6% increase in LTD inforce premium.
The number of employers offering Group Term Life coverage rose 1%, as did STD;
LTD saw an increase of 3%. The total number of insured employees increased by
2% for Group Term Life, 3% for STD, and 5% for LTD.
Group Term Life sales remained flat compared to 2006 at just under $2 billion.
While premium remained level, volume decreased by 3% compared to 2006, which
resulted in reduced face amounts on new policies. The average face amount on a
new Group Term Life policy in 2007 was just over $64,000.
Group Disability sales (STD and LTD) increased at a strong pace, totaling just
under $2.2 billion in new annualized premium. STD sales premium increased by
10%, while new LTD sales premium showed an increase of 18% in 2007.
“Inforce premium growth continues on a steady pattern for the industry for both
Group Term Life and Group Disability products”, said Drew King, President of
JHA. “Sales results for both STD and LTD were in the double-digits after being
sluggish for the past couple of years. Group Life sales growth remains a
challenge.”
To obtain a summary of either Survey, visit JHA’s website at www.jhaweb.com.
Participating companies receive the full report.
JHA, a subsidiary of General Re Life Corporation, is a Disability and
Group Life reinsurance, risk management and research firm based in Portland,
Maine and Stamford, Connecticut. JHA offers a wide range of services in the
areas of underwriting, risk assessment, pricing, valuation, claim management,
marketing, distribution, and research. Through its research practice and
consultative services, JHA is the leading source for information and data about
the Disability and Group Life markets.
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