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Total Group Term Life inforce premium, as reported by companiesparticipating 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.
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The number of employers offering Group Term Life coverage rose 1%, as didSTD; LTD saw an increase of 3%. The total number of insured employeesincreased 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 $2billion. While premium remained level, volume decreased by 3% compared to2006, which resulted in reduced face amounts on new policies. The average faceamount 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, totalingjust under $2.2 billion in new annualized premium. STD sales premium increasedby 10%, while new LTD sales premium showed an increase of 18% in 2007.
"Inforce premium growth continues on a steady pattern for the industry forboth Group Term Life and Group Disability products," said Drew King, Presidentof JHA. "Sales results for both STD and LTD were in the double-digits afterbeing sluggish for the past couple of years. Group Life sales growth remains achallenge."
To obtain a summary of either Survey, visit JHA's website athttp://www.jhaweb.com. Participating companies receive the full report.
JHA, a subsidiary of General Re Life Corporation, is a Disability andGroup Life reinsurance, risk management and research firm based in Portland,Maine and Stamford, Connecticut. JHA offers a wide range of services in theareas of underwriting, risk assessment, pricing, valuation, claim management,marketing, distribution, and research. Through its research practice andconsultative services, JHA is the leading source for information and dataabout the Disability and Group Life markets.
SOURCE JHA
