Gen Re on the state of the US group time period life market

Gen Re has launched the outcomes of the 2023 US Group Time period Life Market Survey, delivering its verdict on the sector’s efficiency up to now 12 months.

The annual survey covers group time period life (GTL) and unintentional loss of life & dismemberment (AD&D) in-force and new gross sales outcomes for the US market, representing each employer-paid and employee-paid enterprise.

Twenty-six corporations supplied GTL outcomes, whereas 24 corporations supplied AD&D outcomes.

For 2023, whole GTL and AD&D in-force premium reached $33.7 billion, with GTL representing 93% of the whole. GTL in-force premium progress charges have slowed since a peak of 6% in 2021, with a 2% improve in 2023.

AD&D in-force premium continued to develop positively, rising by 6% in 2023, the very best fee since 2017. Total, GTL and AD&D in-force premium elevated by 2% year-over-year. Seven of the highest 10 carriers reported optimistic GTL in-force premium progress in 2023.

In 2023, collaborating corporations reported $3.2 billion in mixed GTL and AD&D gross sales premium, with GTL accounting for 92% of the whole. GTL new gross sales premium declined by 3% in 2023, attributed to a couple carriers experiencing double-digit declines.

AD&D gross sales premium – how did it fare in 2023?

The highest 10 corporations held 84% of the market share for brand new gross sales premium, contributing roughly $2.4 billion of the whole 2023 gross sales. AD&D gross sales premium remained optimistic over the previous 5 years, with 11 of the 24 corporations reporting optimistic adjustments of their 2023 outcomes, and 7 experiencing double-digit progress. Mixed GTL and AD&D gross sales premium declined by 2% in 2023.

GTL new gross sales case counts grew by 1% in 2023, and in-force case counts additionally elevated by 1%. For corporations offering gross sales case measurement breakdown data, the ten–99 class accounted for the very best proportion of circumstances (56%), adopted by the 1–9 grouping (25%).

Outcomes had been comparable for in-force circumstances (52% and 30%, respectively), with lower than 1% within the 5,000+ vary for each gross sales and in-force. New gross sales lives elevated by 5% in 2023 after a decline in 2022, and in-force lives grew by 6% year-over-year.

Common face quantities for brand new gross sales declined by 4% in 2023, whereas in-force common face quantities remained flat year-over-year. Month-to-month premium charges for brand new gross sales declined by 6%, with in-force premium charges staying stage. Common premium per life declined for each new gross sales and in-force enterprise. Sixty per cent (60%) of corporations noticed a decline of their common face quantity for brand new gross sales in 2023.

A small variety of corporations with damaging progress strongly influenced the typical premium per life for brand new gross sales, though 61% of corporations reported optimistic progress.

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