Individual disability insurance issuers may have covered slightly fewer people in 2019, but their in-force premium revenue may have increased slightly.
Gen Re has reported figures supporting those conclusions in a summary of results from a voluntary issuer survey. Gen Re received data from 16 insurers.
The participants covered about 3 million people through in-force policies last year, or 1.1% fewer than in 2018, according to the Gen Re survey results.
Premium revenue from individual disability insurance policies already in force increased 0.7%, to $4.9 billion.
- A summary of the Gen Re individual disability market survey is available here.
- An article about y is available here.
The number of new policies sold fell 5.9%, to 275,599, but premiums from the new policies that were sold increased 0.7%, to $426 million.
Here’s how premiums from new policy sales for three major types of individual disability insurance policies changed between 2018 and 2019:
- Non-cancelable: $341 million (up 1.7%)
- Guaranteed renewable: $72 million (down 3.8%)
- Buy-sell: $4.1 million (up 0.4%)
A non-can policy is a policy set up in such a way that the issuer can’t cancel the policy, change the terms or increase the premiums, if the policyholder pays the premiums on time.
A guaranteed renewable policy gives the issuer the ability to increase the premiums.
A buy-sell policy is a policy used to protect partners or other stakeholders in a business against the risk that one or more of the other owners might become disabled.