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Gen Re is pleased to present the results of our 2023 U.S. Individual Disability Market Survey. This annual benchmarking survey covers Non-Cancelable (Non‑Can), Guaranteed Renewable (GR), Buy-Sell and Guaranteed Standard Issue (GSI) product lines for 2022 and 2023. Seventeen carriers participated in the survey representing $5.4 billion of inforce premium. Of those companies, 15 reported Non‑Can results, 14 provided GR results and six reported on their Buy-Sell product. Eight companies provided GSI results.
Total new sales premium from Non‑Can, GR and Buy-Sell combined increased to $490 million (7%) for 2023. Non‑Can and GR sales premium grew by 8% and 3%, respectively; lower than the 11% both products experienced in 2022. Buy-Sell sales finished strong with an increase of 14% over 2022.
Of the $490 million in total new sales premium, Non‑Can products represent 84% or $413.5 million, and GR represents 15% or $73.7 million. Buy-Sell accounts for less than 1% of the total new sales premium and policies but 39% of total new benefit amounts for 2023.
The total number of new policies issued increased 4% to 275,235, while total benefit amounts increased 9% to $1.6 billion.
Total inforce premium from Non‑Can, GR and Buy-Sell combined increased to $5.4 billion, or 2%, in 2023. Non‑Can increased 2% and GR increased 4%, both down about one percentage point compared to 2022. Buy-Sell declined 4% in 2023 compared to ‑6% in 2022.
Of the $5.4 billion in total inforce premium, Non‑Can products represent 84% or $4.6 billion, GR represents 15% or $792.9 million and Buy-Sell accounts for 1% or about $47.1 million.
The number of inforce policies remained fairly level with 2022 at 3.1 million, while total benefit amounts increased 2% to more than $19.6 billion.
Total GSI new sales premium (Non‑Can and GR combined) decreased 4% to $65.8 million in 2023. Non‑Can GSI, which accounts for 98% of the total, fell to $64.8 million, while GR GSI declined 12% to just over $1.0 million. Total GSI inforce premium grew 5% to $460.2 million in 2023.
Employer-paid business accounts for $39.2 million or 60% of the total GSI new sales premium and employee-paid accounts for $26.6 million. Of the total GSI premium inforce, employer-paid accounts for $190.0 million and employee-paid accounts for $270.2 million or 59%.
Participating companies reported $413.5 million of Non‑Can new sales premium. Disability Income (DI) represents more than $404.1 million or 98% and Overhead Expense (OE) accounts for almost $9.4 million.
Overall, Non‑Can new sales premium increased 8%. On a combined basis, new sales premium from Medical and 4A & Above occupations grew by 7% over 2022. New sales premium from 3A and 2A & Below occupations increased 6% and 22%, respectively.
Participants reported nearly $4.6 billion of Non‑Can inforce premium. DI represents $4.4 billion or 96% and OE accounts for $164.1 million.
Overall, Non‑Can inforce premium increased 2%. The 3A occupational class was the only category to decline.
Participants reported $73.7 million of Guaranteed Renewable new sales premium for 2023; DI accounts for $73.6 million and OE accounts for less than $133,000.
Overall, GR new sales premium increased 3% in 2023. The 2A & Below occupations showed the largest increase, while premium from the 4A & Above occupations remained level with 2022 results.
Participants reported $792.9 million of GR inforce premium, up 4% over 2022. Disability Income accounts for $789.0 million or 99%, compared to Overhead Expense premium totaling less than $4 million.
Overall, GR inforce premium increased 4%. Similar to Non‑Can inforce results, the 3A occupational class was the only category to decline.
Six companies reported nearly $2.8 million in Buy-Sell new sales premium in 2023, an increase of 14% over 2022. Buy-Sell inforce premium declined 4% to $47.1 million, marking a 15‑year trend of negative results.
The number of new Buy-Sell policies issued rose 11% to 787 in 2023. Buy-Sell policies inforce totaled 15,644, declining 5%.
Buy-Sell premium per policy for new sales and inforce increased 3% and 2%, respectively.
If you have any questions about our summary report, please reach out to me – or let me know if you'd like to participate in next year’s industry survey!
