Gen Re Announces 2010 U.S. Individual Disability Income Market Survey Results

SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Gen Re is pleased to release the results of the 2010 U.S. Individual Disability Market Survey. This leading annual industry benchmark survey covers Non-Cancelable (Non-Can), Guaranteed Renewable (GR), and Buy-Sell inforce and sales premium results for 2010. Seventeen individual disability carriers participated in the survey.

“Sales premium and policies were down, as potential buyers remained cautious during these uncertain economic times. Income protection should be part of every worker's financial plan, but carriers and producers may need to adjust their traditional approaches to find new sources of growth.”

Participating carriers reported a slight increase (0.7%) in total inforce premium (Non-Can, GR, and Buy-Sell) in 2010, nearing $4.5 billion. Non-Can and GR inforce premium results increased less than 1%, to $3.8 billion and $551 million, respectively. Buy-Sell inforce premium decreased 0.2% to $73.5 million.

Similar to 2009, the total number of inforce policies declined about 2%, and they declined across all three product lines — 1.5% for Non-Can, 3.6% for GR, and 3.7% for Buy-Sell.

Total IDI sales premium was 6% lower than in 2009, totaling $325 million in 2010. By product, Non-Can declined 6.3%, GR fell 3.6% and Buy-Sell declined 5.1%. Total new IDI policies also declined about 6%. By product line; Non-Can policies fell 6.4%, GR fell 3.0%, and Buy-Sell fell 14.7%.

“2010 was another challenging year for individual DI sales and premium growth”, said Drew King, Senior Vice President of the Group & Specialty Reinsurance Division at Gen Re. “Sales premium and policies were down, as potential buyers remained cautious during these uncertain economic times. Income protection should be part of every worker's financial plan, but carriers and producers may need to adjust their traditional approaches to find new sources of growth.”

To obtain a summary of the Survey, visit Gen Re’s website at www.genre.com. Participating companies receive the full report.

General Re Life Corporation operates under the brand name Gen Re and is the North American life and health reinsurance company of General Re Corporation. General Re Life Corporation has the highest financial strength ratings among professional life and health reinsurers. Gen Re's Group & Specialty Reinsurance Division is responsible for Disability, Group Life, Medicare Supplement and Credit reinsurance, risk management and research. Gen Re is one of the leading property/casualty and life/health reinsurers in the world, and is a Berkshire Hathaway Company.