The market for Individual Disability Insurance is showing tangible growth, possibly reflecting a greater awareness of income protection products that didn’t exist among buyers until the pandemic struck.

That’s the big takeaway from our latest U.S. Individual Disability Market Survey results. The annual benchmarking survey covers Non-Cancelable (Non‑Can), Guaranteed Renewable (GR), Buy-Sell, and Guaranteed Standard Issue (GSI) product lines for 2022.

Seventeen carriers participated, representing $5.3 billion of in‑force premium. Of those companies, 15 reported Non-Can results, 14 provided GR results and six reported on their Buy-Sell product. Eight companies provided GSI results.

Market Growth – New Sales Premium

Seven Headline Takeaways

1. Total new sales premium increased by 11% to $457 million for 2022. Non-Can and GR sales premium grew 12% and 11%, respectively, while Buy-Sell sales declined 24% compared with 2021.
2. It’s worth noting that of the $457 million in total new sales premium, Non-Can products represent 84% or $383 million, and GR represents 16% or $71.5 million. Buy-Sell accounts for less than 1% of the total new sales premium and policies but 38% of total new benefit amounts for 2022.
3. Total in‑force premium from the same products combined grew more modestly – by 3% to $5.3 billion in 2022. Non-Can and GR increased 3% and 5%, respectively, while Buy-Sell declined 6%.
4. Of the $5.3 billion in total in‑force premium, Non-Can products represent 85% or $4.5 billion, GR represents 14% or $763.7 million and Buy-Sell accounts for 1% or about $49 million.
5. The actual number of in‑force policies remained level with 2021 at 3.1 million, while total benefit amounts declined 2% to $19.1 billion.
6. Total Guaranteed Standard Issue (GSI) new sales premium (Non-Can and GR combined) jumped by 24% to $68.5 million in 2022. Total GSI in‑force premium grew 6% to $436.8 million, with Non-Can representing $427.6 million or 98% of the total.
7. Voluntary or employee funded coverage accounts for 59% of the total GSI premium in‑force, while new sales premium for employer-paid and employee-paid GSI grew 35% and 11%, respectively.

The numbers I’ve given here are only a snapshot of the analysis contained in the Gen Re Research Center’s summary report. If there’s a particular topic our team can help you with, don’t hesitate to get in touch.