NU Online News Service, April 23, 2004, 12:28 p.m. EDT – Rate increases helped sellers of U.S. individual disability insurance overcome sluggish sales in 2003.[@@]
Premium revenue from new individual disability policy sales fell 1.3%, to $321 million, but revenue from in-force policies increased 4%, to $3.7 billion.
JHA Inc., Portland, Maine, has published those results in its latest individual disability market survey report.
The survey covered guaranteed-renewable policies and non-cancelable policies along with the buy-sell policies used in business transactions.
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.
Premium revenue for guaranteed-renewable policies increased 5.1% in 2003, to $407 million, but premium from sales of new guaranteed-renewable policies fell 2.9%, to $60.2 million.