IDI market reports modest overall growth, according to Milliman

Milliman today released the results of its latest Individual Disability Income (IDI) Market Survey. The report, in its 12th 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 business, and the favorable and unfavorable trends that can affect the long-term profitability of the IDI market.

Key findings include:

  • Combined new IDI annualized premium from the 15 companies totaled $401 million for 2018, representing a 1.5% increase from 2017. Six of the 15 companies reported growth in new sales in 2018.
  • 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.

While the IDI market continues to see modest overall profit increases, high-yield premium growth has remained out of reach for most companies. 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.

To download the entire IDI Market Survey, click here.