US individual disability insurance sales hit hard by COVID: Gen Re
New sales of individual disability insurance in the US fell to $398.9 million in 2020 according to Gen Re’s US Individual Disability Market Survey, a 6.5 percent year on year decline.
The number of new individual disability policies written was down 11 percent year on year, Gen Re said, with COVID-19 impacting new sales.
“Even though most carriers were able to adjust their internal processes to address the challenges of COVID, producers still struggled to close sales without having the ability to meet their clients face-to-face,” said Gen Re, the Berkshire Hathaway-owned life and health and property and casualty reinsurer.
Gen Re’s survey captures non-cancelable (non-can), guaranteed renewable (GR), guaranteed standard issue (GSI) and buy-sell sales and in-force premium results for more than 90 percent of the US individual disability insurance market.
Buy-sell new sales premium fell 19.5 percent, with GR declining 11.8 percent and non-can premium down 5.2 percent year on year.
Non-can and GR in-force premium grew 1.1 percent and 3 percent, respectively, but buy-sell in-force premium declined 3.7 percent, making it the 12th consecutive year this line has posted negative results.
The number of new GR policies fell 19.5 percent, while buy-sell policies were down 21.9 percent. The number of new non-can policies declined by a more modest 4.9 percent.
Meanwhile, total in-force policies were flat, declining less than 1 percent.
Sixteen carriers participated in Gen Re’s 2020 survey, representing $5 billion of in-force premium, an increase of 1.3 percent over its 2019 results.
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