According to the 2010 U.S. Group Life and Group DisabilityMid-Year Market Survey, the group life and disability markets continue to face slow growth after a tough2009, finds South Portland, Maine-based JHA, a division of GenRe.

In total group-term life, participating companies reported a 2percent increase in earned premium to hit over $8.8 billion atmid-year 2010, compared to mid-year 2009. Basic group-term lifeaccounted for most of the total premium. For short- and long-termdisability, the total group disability earned premium fell by 2percent to $6.6 billion. The earned premium for short- andlong-term disability decreased, by 1 percent and 2 percent.

At the same time in 2009, the number of employers offeringinsurance remained relatively unchanged for both short- andlong-term disability, which somewhat declined for group life.

Each product line saw a decrease in the insured: 2 percent forshort- and long-term disability and 3 percent for group life.

In mid-year 2010, group-term life annualized sales premiumdecreased by 3 percent from 2009, totaling more than $1.2 billion.With a 7 percent increase, however, total new sales volume nearlyreached $397 billion. For a new group-term life policy in mid-year2010, the corresponding average face amount hit $78,233, resultingin a 17 percent increase for companies reporting both years.

New annualized premium for short- and long-term group disabilitysaw a 17 percent decline from 2009's mid-year results, accumulatingmore than $1.1 billion. The short-term disability sales premium wasdown by approximately 8 percent, though the new long-termdisability sales premium faced a sharper decline at 21 percent.

"After a tough year in 2009, sales and premium growth in thegroup life and disability market continued to be a challenge duringthe first half of 2010," says Drew King, president of JHA. "Sloweconomic growth, continuing high unemployment, and uncertaintyabout health care reform are combining to reduce sales and enforcegrowth opportunities for most carriers. The difficult environmentis also impacting voluntary and worksite sales, even as manyemployers shift benefit costs and decisions to theiremployees."

In the group life survey, 30 carriers participated to representnearly 80 percent of the market while slightly over 95 percent ofthe group disability market was represented by 27 carriers.