PORTLAND, Maine--(BUSINESS WIRE)--Gen Re has released results of the 2020 U.S. Group Term Life Market Survey. This annual industry benchmark survey covers Group Term Life and Accidental Death & Dismemberment (AD&D) in-force and new sales results for the U.S. market, representing combined employer-paid and employee-paid business.
Twenty-nine companies participated in this year’s survey, reporting both Group Term Life and AD&D results. For those providing comparable data year to year, sales premium declined and in-force premium increased. Mike Fullerton, VP, Sr. Account Executive, commented: “2020 was an extraordinary year and the results in the Group Term Life insurance market were no exception. Although in-force premium growth was positive, new sales premium decreased by 9%. This represents the largest drop in sales premium reported on the survey looking back as far as 2009.”
Key observations of the survey include:
- Participants reported just over $27.4 billion in total Group Term Life in-force premium, a 3% increase compared to 2019 results.
- Both the total number of employers offering coverage as well as the number of insured employees grew by 1% year-over-year.
- Reported in-force and new sales average face amounts for Group Term Life policies reached over $100,000 in 2020 ($102,707 and $104,769, respectively).
- For Group AD&D, in-force premium was up by 1% and new sales premium increased by 3% compared to 2019.
- With new sales totaling just over $2.5 billion in 2020, participants reported a 9% decline in new Group Term Life sales premium.
The Market Survey is an annual benchmark survey produced by Gen Re, with the full results available only to participating companies. A summary report is available online at genre.com/lhsurveys.
About Gen Re
Gen Re, a Berkshire Hathaway Company, is one of the leading Life/Health and Property/Casualty reinsurers in the world. Our North American Life/Health reinsurance company, General Re Life Corporation, has superior financial strength ratings among Life and Health reinsurers. Gen Re delivers customized reinsurance programs and risk management solutions for the Life, Medicare Supplement, Critical Illness, and Individual Disability Income markets. Through our research, we also offer valuable information and insights. www.genre.com
