More Employees Covered By Disability Insurance
In H1 2004

The number of employees covered by group long-term disability (LTD) insurance grew by just over 3%, and the number of short-term disability (STD) insured employees rose by 2% during the first half of 2004, according to a benchmarking survey by disability consulting and market research company JHA.

Group insurance sales and earned premium increased in the first half of 2004, while LTD sales and earned premium remained flat over the same period, the survey of 32 group disability insurance carriers—including 19 of the top 20 carriers—showed.

Combined U.S. group disability mid-year sales premium for both STD and LTD insurance grew by around 2% compared with mid-year 2003, to just over $1.1 billion. Broken down, new sales figures for LTD insurance were flat at just under $779 million, while new STD sales increased 7% to $358 million.

"Overall sales results are relatively flat as compared with both the mid-year and full-year results for 2003. Meanwhile, earned premium continues to grow at a steady pace," Drew King, president of JHA, said.

JHA reported that group disability earned premium for both STD and LTD grew by nearly 6%, reaching almost $5.2 billion. Companies reported a 6% rise in the LTD earned premium and 7% increase in STD earned premium.

The top ten carriers were able to increase their market share during the first half of 2004, garnering 87% of new LTD sales premium, and around 81% of new STD sales premium, the survey showed.

King said, "Due to some company consolidations in the first half of 2004, the growth of the top ten carriers has increased. In addition, there have been some changes to the list and order of top carriers as well."