Group disability insurers had better luck with long-term coverage than with short-term coverage in 2004.
In a year when job growth was sluggish and big increases in health insurance rates devoured employers’ benefits budgets, overall U.S. group long-term disability insurance enrollment increased 5%, to 36 million, according to JHA, Portland, Maine, a disability reinsurance, consulting and research firm that is a unit of General Re Life Corp., Stamford, Conn.
Overall group LTD enrollment rose even though the average cost of LTD coverage per life increased 2% both for new policies and policies already in force, JHA says.
Although revenue from new LTD sales plateaued at $1.3 billion, premium revenue from in-force LTD policies increased 7%, to $7.8 billion.
Performance was weaker on the STD side of the market.