U.S. Individual Disability Income Market - Good news first…
May 12, 2012| By Drew King | Disability | English
It finally looks as though there is some good news in the U.S. Individual Disability Income Market - some encouraging sales figures for 2011. According to our latest US Individual Disability Income Market Survey, there was a measurable increase in new sales premium, number of policies placed, premium per policy and benefit amount per policy.
Total new sales premium increased by 7.1% to nearly $349 million, while the number of new policies grew by 6.6%. Non-Cancellable in-force premium grew by 2% to over $3.96 billion.
Guaranteed Renewable in-force premium also grew, by 1.9%, to $562 million. Recent years have seen flat to negative growth.
However, despite this good performance, there are still some trends causing concern. The current mix of business is heavily skewed towards medical sales - representing over 40% of new Non-Cancellable sales and in-force policies - and with the current uncertainty over healthcare reform, there are worries that major legislation could have an impact on disability coverage.
Another concern is that the industry continues to focus on the higher income segment, and very few carriers are providing income protection solutions for grey and blue collar markets. This is a vast, untapped market, and increasingly, individual disability income carriers will face stiff competition from alternative disability solutions such as group LTD or critical illness plans.
So while we are cautiously optimistic about the way the market is heading, it is important for carriers to continue to innovate, and work to differentiate the product from alternative solutions.
View the U.S. Individual Disability Income Market Survey to find out more.