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May 12, 2002 at 08:00 PM
LIMRA: Group Premiums Grew In Difficult Year For Employers
In-force premium for United States group life, disability and long term care insurance all increased in 2001, according to reports from LIMRA International.
This is a sign of strength of commitment to offering benefits among employers that are dealing with economic challenges, contends the Windsor, Conn. insurance research association.
In-force premiums for group disability were up 5% and for group life, 7%, LIMRA says.
But the strongest performance came in LTC insurance. Here the industry saw in-force gains of 16% in premiums, 17% in employer-sponsored groups, and 14% in participants, LIMRA says.
“These results should be encouraging to group writers,” given that the year 2001 saw rising unemployment and significant economic uncertainty, says Anita Potter, manager of group research.
Going forward, she adds, “the outlook is positive. With continuing high health care inflation, voluntary benefits have become an important part of current employer benefit strategies.”
New group life and disability premiums also grew, LIMRA points out, but says much of the activity in 2001 reflected movement of existing employer contracts, rather than new business.
