Individual disability income (IDI) market reports low overall growth in 2019, according to Milliman
15 IDI market leaders record combined 2019 new premium sales of $402 million, growth rate of 0.4%
SEATTLE, Oct. 16, 2020 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Individual Disability Income (IDI) Market Survey. The report, in its thirteenth edition, measures sales trends across 15 IDI companies, representing over 90% of the market. The survey also covers recent changes in underwriting and product design, the range of views that companies have on the current profitability of their businesses, and the favorable and unfavorable trends that can affect the long-term profitability of the IDI market.
Key findings include:
- The combined new IDI annualized premium issued in 2019 for all 15 companies increased by 0.4%, reaching $402 million. The highest annual growth rate in 2019 among the 15 companies was 17%; the lowest was -33%. Seven of the 15 companies reported positive growth in new premium in 2019.
- The percentage of new IDI annualized premium in 2019 issued to doctors and surgeons was 32%, compared to 30% in 2018.
- The employer-sponsored multi-life market continues to increase its share of new IDI annualized premium, reaching 44% in 2019.
- The uncertainty regarding the potential impact of COVID-19 on IDI blocks was mentioned by a number of companies as an unfavorable trend, as was the low interest rate environment, which was mentioned more frequently in this survey compared to prior years.
"While the growth rate for new sales from 2018 to 2019 was relatively flat, IDI annualized premium issued year-to-date in 2020 through June increased by 1.8%," says Tasha Khan, principal at Milliman and co-author of the report. "But given the events of this year, the full impact of the COVID-19 pandemic on IDI sales is still largely unknown."
The full IDI Market Survey is available at http://www.milliman.com/IDI-survey/ 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.
SOURCE Milliman, Inc.
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