Bonita Springs, Fla.
The recession probably will hurt group life revenue, but whether the recession will increase the ratio of claims to premium revenue is unclear, said participants at a session on group life during the disability conference here.
JHA, Portland, Maine. JHA, a disability consulting and risk management arm of General Reinsurance Corp., Stamford, Conn., set up the session to emphasize its growing group life survey data operations.
Layoffs could reduce the number of workers in the workforce, causing volume to go down, said one speaker, Bob Hardin, a group actuary at JHA.
If an employer hoard experienced employees and lay of the younger workers, that could increase the average age of its workforce and make the employer a less attractive group life risk, Hardin said.
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Some group life executives in the audience agreed that the average age of group life insureds might increase, but others said they expect to see employers keep the younger employees and lay off the older employees.
Also at the group life session:
–One attendee complained that direct group life writers appear to be doing too little to track and control concentration of group life risk in specific locations or to reinsure against catastrophic losses.