Tag Archives: individual disability income

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.

Individual disability income (IDI) companies see jump in combined new sales after market shake-up, according to Milliman report

Milliman has released the results of its latest Individual Disability Income (IDI) Market Survey. The report, in its 10th edition, measures sales trends across 14 IDI companies, representing 90% of the market. The survey also covers recent changes in underwriting and products, 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. New this year, the report also includes a section discussing companies’ progress implementing the new 2013 Valuation Table.

Key findings include:

• Combined IDI new premium from the 14 IDI companies increased in 2016 by 1.3%, compared to 5.7% in 2015. Combined IDI new premium year-to-date through June 30, 2017, increased by 9.0% over the prior year.
• New premium from the employer-sponsored multilife market exceeded 43% of total IDI new premium in 2015 and 2016.
• There is continued stability in the share of new IDI premium from doctors.
• The share of new IDI premium issued using voluntary guaranteed standard issue (GSI) underwriting was 32% and 34% in 2015 and 2016, respectively.

The decision of a major player to exit the individually sold IDI market this past year appears to be benefiting other IDI companies in 2017, as they take on a portion of those sales. We believe this is a short-term impact. In the longer term, overall IDI market growth may be constrained by the loss of one of the larger writers of IDI business.

To download the full IDI Market Survey, click here.





Favorable signs emerging from new individual disability income (IDI) sales, according to Milliman report

beal_robertMilliman today released the results of its latest Individual Disability Income (IDI) Market Survey report. The report, in its ninth edition, measures sales trends across 15 IDI companies, representing 90% to 95% of the market. The survey also covers recent changes in underwriting and products, 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.

The 2016 survey results identify some very favorable trends, including:

• A combined new annualized premium of $392.2 million, highest since the 1990s
• A solid 5.8% growth in new annual premium from 2014 to 2015
• New premium from the employer-sponsored multi-life market exceeding 40% of total IDI new premium in 2014 and 2015
• A stabilization in the share of new IDI premium from doctors
• A reduction in the share of new IDI premium issued using voluntary guaranteed standard issue (GSI) underwriting

It’s been a tumultuous 10 years for individual disability income carriers. What Milliman’s IDI Market Survey reveals is that 2016 presents a much healthier picture of the market than in many years past. The survey sheds light on the causes and trends behind this optimistic outlook, and is a valuable resource for any companies looking to mitigate risk in a competitive environment.

To read the entire IDI Market Survey report, click here.

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