Milliman report shows modest growth in individual disability insurance market

New Individual Disability Insurance annualized premium totaled $401 million for 2018, representing a modest 1.5% increase from 2017, according to the latest Individual IDI Market Survey from Milliman, Inc.

Just six of the 15 companies participating in the survey, representing over 90% of the disability insurance market, reported growth in new sales in 2018.

“While the IDI market continues to see modest overall profit increases, high-yield premium growth has remained out of reach for most companies,” says Robert Beal, principal at Milliman and co-author of the report. “Perhaps as a result, there seems to be an increased interest in branching out from the more traditional IDI market segments, with survey participants listing a wide range of growth opportunities they plan on pursuing over the coming years.”

The report from Seattle-based Milliman, a premier global consulting and actuarial firm, is in its twelfth edition. The survey also covers recent changes in underwriting and product design, the range of views that companies have on the current profitability of their business, and the favorable and unfavorable trends that can affect the long-term profitability of the IDI market.

Other key findings include:

  • The top five IDI contributors to this year’s survey produced 78% of the total new annualized premium among the 15 companies, and the top 10 IDI companies produced almost 96% of the total new annualized premium.
  • The percentage of new IDI annualized premium in 2018 issued to doctors and surgeons has remained consistent, at 30%, while new premium issued to executives has been dropping since 2014, reaching 11% in 2018.
  • The employer-sponsored multi-life market continues to increase its share of new IDI annualized premium, from 42% in 2017 to 44% in 2018.

The full IDI Market Survey is available at http://www.milliman.com/insight/2019/2019-Annual-Survey-of-the-U_S_-Individual-Disability-Income-Insurance-Market/ or by contacting authors Robert Beal at [email protected] and Tasha Khan at [email protected].

About Milliman: Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit www.milliman.com.