Milliman: Use of Disability Issue Guarantees Grows

Disability insurers seem to be making more use of guaranteed standard issue (GSI) programs at the worksite.

Anne Mitchell, a consulting actuary in the Portland, Maine, office of Milliman Inc., writes about the implications of disability insurance GSI programs in a commentary distributed by Milliman.

A GSI program makes disability insurance available to employees as long as they have been working full-time for a specified period of time, Mitchell says.

A GSI program may please employers because it is easy to administer and appealing to employees, but a GSI program can expose an insurer to the risk that the employees who are more likely to become disabled will sign up for the coverage, Mitchell says.