U.S. Group Life Business in Need Of Stimulus
April 28, 2012| By Drew King | Life | English
The U.S. Group Life insurance market remains a mixed bag, according to our latest market survey. While in-force premium appears to be holding up, new sales continue to struggle.
Thirty-four companies, representing over $22.3 billion in Total Life and AD&D premium, participated in our U.S. Group Life Market Survey 2011. The results showed that total life sales premium was down 2%, even though voluntary sales grew 4%.
In-force premium for Total Group Term Life registered a moderate uptick in 2011, increasing by 3%, perhaps a sign that companies are hiring back lost employees. But the lack of growth in the number of employers offering a Group Life benefit is still a concern and there has been no positive growth in new cases since 2007.
Similarly, sales figures for AD&D present a mixed picture of the market. New sales premium for Total AD&D fell by 14% in 2011. By contrast, Voluntary AD&D bounced back from a 30% drop in 2010 to an increase of 25% in new sales premium in 2011.
Overall, competition in the marketplace continues to suppress growth. But if carriers can broaden their market focus, and if employers can expand job creation, then sales results will improve. But that will only happen if carriers can continue to demonstrate the real value of Group Life benefits to clients.
Find out more about U.S. Group Life market trends.