NU Online News Service, April 2, 2003, 5:15 p.m. EST – U.S. insurers protected 2% more workers against short-term disabilities in 2002 than they protected in 2001, and they protected 1% more workers against long-term disabilities, according to the latest group disability market survey from JHA Inc., Portland, Maine.
The disability risk management and consulting firm found that new sales of short-term and long-term group disability insurance increased 1%, to $1.7 billion, and that revenue from group disability policies increased 5%, to $9.3 billion.
Revenue from in-force policies grew at roughly the same rate for STD and LTD policies, but insurers had better luck at signing up new LTD customers than new STD customers. LTD sales rose 5%, while STD sales shrank 6%, JHA says.
Thirty-five insurers participated in the JHA survey.
Although group disability revenue growth was modest in 2002, “we are encouraged to see that this modest growth was accompanied by evidence of stronger pricing,” Drew King, JHA’s president, says in a statement about the survey results.
JHA is a unit of GeneralCologne Re, Cologne, Germany.