Insurers generated less revenue from sales of new U.S. group disability plans during the first half of the year but were protecting more workers against disability.
JHA, Portland, Maine, published those statistics in a summary of its latest U.S. group disability insurance market survey, in which 32 carriers participated.
Premium revenue from sales of new short-term disability plans fell to $355 million during the first half, down 12% from the STD sales revenue total for the first half of 2005, and premium revenue from new long-term disability sales fell 11%, to $4.3 billion.
Despite the drop in revenue from new policy sales, the number of LTD cases sold increased 5.5%, to about 23,000, and the number of STD cases sold increased 7.4%, to about 19,000.
Premium revenue from in-force cases rose 5% for LTD coverage, to $4.3 billion, and 6.2% for STD coverage, to $1.5 billion.
Carriers also did a better job of carrying out their core mission: shielding Americans against illnesses and injuries that cause severe loss of income.