Group Term Life – Results of 2021 U.S. Market Survey

Link: https://www.genre.com/knowledge/publications/2022/june/surveylhgtlsum2206-en

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Gen Re is pleased to share the results from our latest U.S. Group Term Life Market Survey, an industry benchmarking survey covering the Group Term Life (GTL) and AD&D industry. The survey tracks sales and in‑force results as well as lapse rate and employee-paid data.

Twenty-one of the 29 companies participating in the 2021 survey have provided Group Term Life data over the past 10 survey years.

Twenty-nine companies provided GTL results for 2021. Twenty-seven provided AD&D results. On a combined basis, total GTL and AD&D in‑force premium reached $31.6 billion, with GTL representing the majority (94%) of the total. (Exhibit A)

For GTL in‑force premium, reported industry growth has ranged between 2% and 5% over the past 10 years. In 2021, in‑force premium grew by 6% compared to 2020.

After a five-year low of 1% growth in 2020, AD&D in‑force premium rose by 3% in 2021. (Exhibit B)

Author(s): Nicole Conti

Publication Date: 7 June 2022

Publication Site: Gen Re

Individual Disability Carriers Steer Through Uncertain Times

Link: https://www.genre.com/knowledge/blog/2022/august/individual-disability-carriers-steer-through-uncertain-times-en

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Seventeen carriers participated in our 2021 U.S. Individual Disability Market Survey, representing 99% of the market and $5.1 billion of in‑force premium. New sales in 2021 were $399 million which was flat when compared to new sales in 2020. Breaking this down even further, both Non-Cancelable (Non‑Can) and Guaranteed Renewable (GR) sales were flat when compared to 2020. Non‑Can was down 0.1% and GR was up 0.5%. Of the $399 million in total new sales premium, Non‑Can products represent 84% or $334 million, and GR is 16% or $65 million.

When asked about meeting their 2021 sales goals, 47% of the responding companies said they missed theirs. 18% of the companies met and 35% of the companies exceeded their goals. Some of the reasons given for missing sales goals were:

COVID limited face-to-face contact with consumers

Agents were focused on other products such as life insurance

The number of new policies issued grew by 2% to over 251,000 and total benefit amounts increased by 3% to more than $1.6 billion. The medical market continues to be a main driver of new business. In 2021, close to 30% of all new policies sold were in the medical market; however, the industry did see some growth down-market with increases in the number of new policies sold in the blue collar space.

Author(s): Steve Woods

Publication Date: 3 Aug 2022

Publication Site: Gen Re Perspective