What You Need to Know
- Between 2018 and 2019, the number of new policies sold fell 6.6%.
- Premiums from the new policies sold increased 0.4%.
- Some survey participants worry about a lack of advisor interest and a loss of home office market knowledge.
U.S. sellers of individual disability insurance have been doing well — but some say the COVID-19 pandemic is starting to affect claims.
One insurer told disability market trackers at Milliman that it has seen a 200% increase in claim notices resulting from COVID-19.
Another said it has seen a “significant increase in claims based on risk of disability due to potential exposure to COVID-19.”
Robert Beal and Tasha Khan have included those observations in a newly promoted Milliman individual disability issuer survey report that was created in September 2020.
What Your Peers Are Reading
The Milliman Individual Disability Market Report
Milliman is a Seattle-based actuarial consulting firm. Beal and Khan based the report on questionnaire responses collected in late 2020, after the first two waves of COVID-19 cases had passed.
The results include responses from 15 insurers. Those insurers account for about 90% of U.S. individual disability insurance sales.
Gen Re released another individual disability market survey report earlier in the year. That report was based on questionnaire responses from 16 insurers.
Market Performance Data
Some of the latest market performance data in the Milliman report is for 2019, and some is for the first half of 2020.