PORTLAND, Maine, April 29 JHA has released the results ofits 2007 U.S. Individual DI Market Survey. This industry survey capturesNon-Cancelable, Guaranteed Renewable, and Buy-Sell sales and inforce premiumresults for more than 90% of the U.S. individual disability insurance market.Fifteen carriers participated in the 2007 survey.
U.S. individual disability inforce premium (Non-Can, GR, and Buy-Sell)grew 3% in 2007, reaching over $4.2 billion. Participating companies reporteda 2.9% increase in Non-Can inforce premium, and a 3.7% increase in GR inforcepremium. The number of existing policies remained flat; both Non-Can and GRinforce policies grew less than 1%. Benefit amounts for Non-Can increased 3.2%compared to 2006, while GR benefit amounts increased 5.1%.
2007 U.S. individual disability sales (Non-Can, GR, and Buy-Sell)increased nearly 7%, reaching over $342 million. Sales for both Non-Can and GRproducts were positive, increasing 6.2% and 8.7%, respectively.
The U.S. individual disability business continues to be dominated byDisability Income versus Overhead Expense types of policies. For Non-Can,Disability Income accounted for 95% of new sales while Overhead Expenseaccounted for 5%. For GR, Disability Income accounted for approximately 99%of 2007 new sales premium while Overhead Expense accounted for only 1%.
"In 2006 the majority of survey participants reported flat sales for theyear; however, for 2007 ten out of 15 participants reported increases insales. New sales growth of 6.5% was the highest rate of growth we have seen inthe last five years," said Drew King, President of JHA.
The JHA 2007 U.S. Individual Disability Income Market Survey features bothinforce and new sales data. Participating companies receive the comprehensivereport. To obtain a summary of the survey results, visit JHA's website athttp://www.jhaweb.com.
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.