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With the COVID‑19 pandemic at its peak, 2021 was an interesting year for Group Term Life. While total sales were up in 2021, our recently released 2021 U.S. Group Term Life Market Survey revealed that some companies fared better than others. In fact, on a year-to-year comparison basis, we have seen a wider variance that warrants taking a closer look. Despite this variance, the top 10 companies continue to hold 82% of the market share for new sales premium.
The 29 companies participating in the survey reported over $2.9 billion in combined GTL and AD&D sales premium in 2021, with GTL accounting for 92% of the total. Perhaps another notable observation was that the AD&D sales premium, which has historically been more volatile than the GTL sales premium, remained relatively flat year over year. The 2021 AD&D sales growth was 1%, compared to a growth of 3% in 2020.
For 2021, the in‑force premium results were more typically aligned with earlier years. GTL in‑force premium growth was positive for 22 of the 29 companies reporting totals for both 2021 and 2020, with seven of those companies reporting double-digit increases. Total GTL and AD&D combined in‑force premium reached $31.6 billion, with GTL representing the majority (94%) of the total. This total grew 6% year‑over‑year.
AD&D premiums, reported by 27 carriers, show that after a five-year low of 1% growth in 2020, AD&D in‑force premium rose by 3% in 2021.
Corresponding with the total sales premium rebound, total GTL new sales case counts also showed positive growth. After falling by 10% in 2020, the GTL new sales case count ticked up by 5% in 2021. Over half of companies reporting this data (16 out of 29) experienced positive growth, with 10 showing an increase greater than 10%.
After three years of slight growth, in‑force case counts held steady at 3% for 2021. For companies providing sales case size breakdown information for the two-year period, the 10–99 category accounted for the highest percentage of cases in 2021 (55%), followed by the 1–9 grouping (29%). Results were similar for in‑force (51% and 31%, respectively). Less than 1% fell in the 5,000+ range for both sales and in‑force.
Average face amounts for new sales fell by 5% year-over-year, amplified by the experience of a small number of companies with declines greater than 25%. Meanwhile, in‑force face amounts increased by 3%.
Both new sales and in‑force face amounts averaged over $100,000 for the second year in a row. Average face amounts for new sales were $104,069 in 2021 with average in‑force face amounts at $108,922. New sales premium per life averaged $210 in 2021 with an average in‑force premium of $240.
Monthly premium rates were up by 10% for new sales and grew slightly for in‑force. Five companies reporting an increase in monthly premium rates for new sales saw double digit growth in 2021.
For more detail and data, you can learn more in our summary report.
After a year characterized by mostly positive outcomes, it will be interesting to see what happens with our 2022 results. If you’d like to be added to our list of survey participants, please let me know!
