Disability income sales survey

Article Abstract:

The disability income insurance market continues to suffer from excessive underwriting losses, thus many insurers are revising their underwriting policies to limit losses and exposures. Some insurers are exiting the disability income market, and others are increasing their cross-selling and private labelling, thus causing a market consolidation. Many insurers are limiting claims for mental, drug and nervous disorders, and are pricing policies based on geographic location and sex. Total net premium written disability income insurance was $7.34 billion in 1994.

Industry Overview

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DI writers try to end the bleeding

Article Abstract:

Underwriters of disability insurance will have to change to overcome the large amount of losses resulting from adverse selection, fast rising claims rates and insurance products that offer overgenerous benefits. These underwriters learned that physicians and attorneys are not the best risks for disability insurance. Some companies have tried to use price flexibility to help contain costs, but these insurers have found that such plans do not address the containment of claims.

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Disability income sales results

Article Abstract:

Disability insurance premiums are on the rise due to changes in policy structures and stricter underwriting standards for physical and financial health plans. Many insurance companies have shifted to guaranteed-renewable policy structures to provide premium flexibility. Insurance companies are also focusing on measures to prevent disabilities.

Prices and rates

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