TOP
Gen Re’s 2023 U.S. Group Term Life Market Survey was released to participating companies this spring – the survey provides us all an overall picture of the $34 billion market. The analysis of the reported data paints a stable market picture overall, although outliers in some segments influence the apparent trend, in new sales premium for example.
Our annual survey is popular with participants because it allows them to benchmark their results against those of their peers, as well as the industry as a whole. It covers the Group Term Life (GTL) and Accidental Death and Dismemberment (AD&D) industry, tracking sales, in‑force results, lapse rates and employee-paid data to name a few.
Twenty-six companies participated this year, 20 of which are long-time contributors, providing data over the past 10 survey years. Here are some of the key takeaways. (Unless otherwise mentioned, total GTL and total AD&D include combined employer-paid and employee-paid results.)
On a combined basis, total GTL and AD&D inforce premium reached $33.7 billion, with GTL representing the majority (93%). On a combined basis, GTL and AD&D inforce premium increased by 2% year-over‑year.
GTL inforce premium growth rates have slowed since a 6% peak in 2021. In 2023, premium increased by 2% with 19 of the 26 companies reporting positive growth, and 7 of the top 10 carriers reporting positive GTL inforce premium growth.
AD&D inforce premium continues with its positive trend. In 2023, premium rose by 6%, the highest growth rate seen since 2017.
Participating companies reported $3.2 billion in combined GTL and AD&D new sales premium in 2023, with GTL accounting for 92% of the total.
Combined GTL and AD&D new sales premium declined 2% in 2023.
GTL new sales premium was down 3% in 2023, due to a small handful of carriers experiencing double-digit premium declines.
The top 10 companies held 84% of the market share for new sales premium, contributing approximately $2.4 billion of total 2023 sales.
AD&D sales premium has remained positive over the past five years; 11 of the 24 companies reporting AD&D sales premium experienced a positive change in their 2023 results; seven saw double digit growth.
GTL new sales case counts and inforce case counts both grew by 1% in 2023.
For companies providing sales case size breakdown information for the two-year period, the 10‑99 category continues to account for the highest percentage of cases (56%), followed by the 1‑9 grouping (25%). Results were similar for inforce (52% and 30%, respectively). Less than 1% fell in the 5,000+ range for both sales and in‑force.
Three out of 25 companies posted growth over 20%, contributing to the overall positive result in 2023 case sales. Most companies (60%) continue to see declines in their new sales case counts. After a drop in 2022, new sales lives rose by 5% in 2023. Inforce lives grew by 6% year-over‑year.
Average face amounts for new sales declined by 4% in 2023. In‑force average face amounts dropped below $100,000 for the first time since 2019.
Monthly premium rates were also down for new sales, dipping 6%. Inforce premium rates stayed level.
Sixty percent of companies saw a decline in their average face amount for new sales in 2023.
As with past years, a small number of companies with negative growth strongly influenced the average premium per life new sales result. Nearly two-thirds of companies saw growth.
For more details, you can see the summary report from the Gen Re Research Center – and if you have any questions about its findings, don’t hesitate to reach out to me.
