Group DI Executives Stress Need To Grow Profits
Bonita Springs, Fla.
Steps that group disability insurers can take to increase profits during a time of slow growth was the talk of many executives here at a conference sponsored by John Hewitt & Associates Inc., Portland, Maine.
UnumProvident Corp., Chattanooga, Tenn., will try to separate the producers who send it profitable cases from the producers who send it high volumes of unprofitable business, said Kevin McCarthy, UnumProvidents executive vice president of underwriting.
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McCarthy pointed out that disability insurers got about $1.1 billion of their new 2002 group LTD sales by taking business away from competitors at what usually turned out to be unprofitably low rates.
McCarthy conceded that, in the late 1990s, his company was one of the companies that set prices too low, gambling on predictions that investment earnings would rise and claims would stabilize.