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April 23, 2009 at 08:00 PM
Group disability insurance sales revenue fell in 2008, but group life sales revenue rose, and the total number of workers protected by plans also increased.
Researchers at JHA, Portland, Maine, a research, consulting and reinsurance services unit of General Re Corp., Stamford, Conn., have published figures supporting those conclusions in a summary of results from a survey of 30 disability insurance carriers and 35 group life carriers.
New sales of group short-term and long-term disability insurance fell 5%, to $2.1 billion, with STD sales falling 2% and LTD sales falling 7%.
The decrease in group LTD sales “may be an indication of changes in employer and employee purchasing behaviors as a result of the recession,” JHA President Drew King says.
Although new sales dropped, revenue from in-force cases increased 4%, to more than $13 billion, and the total number of U.S. workers insured against short-term disability increased 4%. The number insured against long-term disability increased 3%, JHA researchers estimate.
