U.S. group term life insurance issuers did better at holding on to customers in 2020 than at making new sales.
Nicole Conti, an executive at Gen Re, has provided a look at U.S. group term life market performance in a summary of results from the company’s latest group life issuer survey.
The company received data from 29 group term life issuers.
The results support what executives from some insurers were saying during quarterly meetings with securities analysts: The COVID-19 pandemic disrupted efforts to make new sales but improved customer retention levels.
Here’s what happened to group term life plans between 2019 and 2020.
New Group Term Life Plans
- Number of People Covered: Fell 15%
- Premiums: Fell 9%, to $2.5 billion
In-Force Group Term Life Plans
- Number of People Covered: Rose 1%
- Premiums: Rose 3%, to $27.5 billion
Gen Re also compiled data on group accidental death and dismemberment (AD&D) coverage. Here’s what happened to AD&D revenue between 2019 and 2020:
- New AD&D Sales: Rose 3%, to $241 million
- In-Force Plan Premiums: Rose 1%, to $1.9 billion
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