JHA Finds Growth in Group Life And DI Markets

Insurers are reporting modest increases in revenue from U.S. group life and U.S. individual disability policies already in force.

Combined revenue from employer-paid and employee-paid group life rose 3% in 2007, to $18 billion, even though premium revenue from new group life sales flattened out at about $2 billion, according to researchers at JHA, Portland, Maine.

In-force premium rates at the 32 insurers that participated in the JHA group life survey fell 1%, to 23 cents per $1,000 of coverage, while the average premium for new sales was about 19 cents per $1,000 of coverage.

Although coverage was cheaper, the average death benefit per covered employee fell 5% for new sales of employer-paid plans, to $63,598, while the average fell 3% for new employee-paid plans, to $72,979, JHA researchers report.

Meanwhile, the researchers who conducted the JHA U.S. individual disability insurance market survey, which included 15 carriers, say total individual disability insurance premium revenue increased 3%, to $4.2 billion as revenue from new sales jumped 7%, to $342 million.

The number of policies in force edged up about 1%.

Posted in Estate Administration.