NU Online News Service, April 28, 2003, 5:17 p.m. EDT – U.S. individual disability insurers generated strong gains in sales in 2002 and modest gains in revenue from policies already in force, according to results of a market survey conducted by JHA Inc., Portland, Maine.
JHA, a unit of GeneralCologne Re that provides disability risk management and consulting services, compiles regular disability market reports.
The 18 carriers that participated in a new individual disability market survey, increased premium revenue on in-force policies only 4% in 2002, to $3.3 billion.
But sales of new individual disability policies rose 14%, to $303 million.
Premium revenue from sales of the most popular product, “non-cancelable” disability income coverage, increased 22%, to $243 million.
Sales of a less common type of disability insurance, “guaranteed renewable” disability income coverage, fell 11%, to $53 million. Eight of the 14 companies in that market experienced drops in sales, JHA says.
An issuer of a guaranteed-renewable policy agrees to lock in benefits but keeps the right to increase rates for specific reasons.
The issuer of a non-can policy agrees to lock in both benefits and rates.