PORTLAND, Maine, April 28 /PRNewswire/ -- 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 http://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.