PORTLAND, Maine, April 29 /PRNewswire/ -- JHA has released the results of its 2007 U.S. Individual DI Market Survey. This industry survey captures Non-Cancelable, Guaranteed Renewable, and Buy-Sell sales and inforce premium results 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 reported a 2.9% increase in Non-Can inforce premium, and a 3.7% increase in GR inforce premium. The number of existing policies remained flat; both Non-Can and GR inforce 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 GR products were positive, increasing 6.2% and 8.7%, respectively.
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 99% of 2007 new sales premium while Overhead Expense accounted for only 1%.
"In 2006 the majority of survey participants reported flat sales for the year; however, for 2007 ten out of 15 participants reported increases in sales. New sales growth of 6.5% was the highest rate of growth we have seen in the last five years," said Drew King, President of JHA.
The JHA 2007 U.S. Individual Disability Income Market Survey features both inforce and new sales data. Participating companies receive the comprehensive report. To obtain a summary of the survey results, visit JHA's website at http://www.jhaweb.com.
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.