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March 08, 2002 at 07:00 PM
NU Online News Service, March 8, 2:52 p.m. – Many group long-term disability insurers seem to be winning new customers by offering unrealistically low initial rates, in the hope that they will somehow get big increases on policy renewals, according to a research note from Lehman Brothers Inc., New York, on a major Fort Myers, Fla., disability insurance conference.
Group LTD premium revenue grew only 6% in 2001, analysts Eric Berg and E. Stewart Johnson write, citing preliminary figures from John Hewitt & Associates Inc., Portland, Maine, the disability consulting and management firm that organized the conference.
