The market for Individual Disability insurance continued to grow in 2023, maintaining the momentum achieved in 2022 as the pandemic effect subsided. Total new sales premium combined from Non-Cancelable, Guaranteed Renewable, and Buy-Sell had a 7% year-over-year increase to $490 million.

Seventeen carriers participated in our latest U.S. market survey, representing $5.4 billion of inforce premium – with 15 carriers reporting Non-Cancelable results, 14 provided Guaranteed Renewable results, and six reported on their Buy-Sell product. Eight companies supplied Guaranteed Standard Issue results.

Below you will see the 10‑year growth pattern for the market by product type and total sales, as well as six takeaways from the full study.

Sales Premium Growth Rates

Six Takeaways

1. Sales Premium – Non-Cancelable and Guaranteed Renewable sales premium grew by 8% and 3% respectively, lower than the 11% both products experienced in 2022. Buy-Sell sales premium increased 14% over 2022.
2. Total New Sales Premium – Of the $490 million in total new sales premium, Non-Cancelable products represent 84% or $413.5 million, and Guaranteed Renewable accounts for 15% or $73.7 million. Buy-Sell represents less than 1% of the total new sales premium and policies for 2023 yet 39% of total new benefit amounts.
3. Total Inforce Premium – Inforce premium from the same products combined grew by 2% to $5.4 billion in 2023. Non-Cancelable and Guaranteed Renewable increased 2% and 4%, respectively, while Buy-Sell declined 4%, compared with ‑6% in 2022.
   Non-Cancelable products represent 84% (or $4.6 billion); Guaranteed Renewable represents 15% ($792.9 million) and Buy-Sell accounts for 1% ($47.1 million).
4. Inforce Policies – 2023 remained fairly level with 2022 numbers, at 3.1 million while total benefit amounts increased 2% to more than $19.6 billion.
5. Total Guaranteed Standard Issue New Sales Premium – Non‑Can and GR GSI combined fell 4% to $65.8 million in 2023. Non‑Can GSI, which accounts for 98% of the total, dropped to $64.8 million, while GR GSI declined 12% to just over $1.0 million.
6. Total Guaranteed Standard Issue Inforce Premium – Total GSI inforce premium grew 5% to $460.2 million in 2023. Employee-paid accounts for 59% of the total GSI premium inforce, or $270.2 million

The stats shown here are only a sample of the analysis contained in the Gen Re Research Center’s summary report, which provides a deeper dive into the Individual Disability market trends. Take a look at the findings – and if there’s a particular topic our team can help you with, don’t hesitate to get in touch.