PORTLAND, Maine--(BUSINESS WIRE)-- JHA is pleased to release the results of the 2008 U.S. Group Life Market Survey and the 2008 U.S. Group Disability Market Survey. These leading industry benchmark surveys cover Group Term Life, Short Term Disability (STD), and Long Term Disability (LTD) inforce and sales premium results for 2008. Thirty-five insurance carriers participated in the Life Survey, and 30 carriers participated in the Disability Survey.

Participating carriers reported that Total Group Term Life inforce premium increased 5% in 2008 to just over $19 billion. Group Disability (STD and LTD combined) inforce premium grew approximately 4%, reaching $13.4 billion, with STD inforce premium increasing 6% and LTD increasing 4%.

For Group Term Life, STD, and LTD, the total number of employers offering coverage increased slightly (less than 1%) compared to 2007. The total number of insured employees increased by just over 3% for Group Term Life and LTD, while STD increased 4%.

Group Term Life sales rebounded in 2008, reaching $2.2 billion, a 9% increase over last year. Volume rose as well, with participating companies reporting an 11% increase compared to 2007. Correspondingly, the average face amount on new Group Term Life policies increased by 10%, reaching over $69,000.

Combined Group Disability sales (STD and LTD) were down by 5% compared to 2007, totaling $2.1 billion in new annualized sales premium. The decrease appears to be driven by LTD sales, which declined by 7%, while STD sales increased by 2%.


“Across all products, inforce premium continued to show respectable growth, which is a positive sign given the economic environment last year,” said Drew King, President of JHA. “Sales results in 2008 were mixed. The decrease in group LTD sales, especially Voluntary LTD, may be an indication of changes in employer and employee purchasing behaviors as a result of the recession.”

To obtain a summary of either Survey, visit JHA’s website at www.jhaweb.com. Participating companies receive the full report.

JHA is the Disability and Group Life reinsurance, risk management and research division of General Re Life Corporation. Headquartered in Portland, Maine, JHA offers its clients reinsurance solutions and consultative support in the areas of underwriting, risk management, pricing, valuation, claim management, marketing, distribution and product development.

Through its research practice, publications and industry events, JHA is the leading source for information and insight about the Disability and Group Life markets.

General Re Life Corporation conducts business as Gen Re LifeHealth, and is a Berkshire Hathaway Company.



JHA

Marcy Updike, 207-874-2261 x126



Source: JHA