Total Group Term Life inforce premium grew by 2 percent in 2010,totaling over $20.3 billion, results from the 2010 U.S. Group LifeMarket Survey and the 2010 U.S. Group Disability Market Surveyshowed. Combined short-term disability and long-term disabilityinforce premium rose slightly, by roughly 1 percent, totaling closeto $13.2 billion.

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STD inforce premium increased by 4 percent while LTD inforcepremium remained level year-over-year. Compared to 2009, the totalnumber of employers offering coverage declined by approximately 1percent for Group Term Life, and increased by 1 percent for LTD andSTD. The total number of insured employees was up close to 1percent for Group Term Life, remained level for LTD and increasedby 3 percent for STD. Group Term Life sales remained flat in 2010,at $2.3 billion.

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Reported volume for participating carriers decreased by close to5 percent. The average face amount on new Group Term Life policiesincreased by 10 percent, to $79,204 in 2010. Combined groupdisability (STD and LTD) sales declined by 13 percent, to nearly$2.3 billion.

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Both LTD and STD sales decreased, by 4 percent for STD and 17percent for LTD. “2010 proved to be another very challenging yearfor most companies in the group life and disability business,” saysDrew King, senior vice president at Gen Re Life, which released thesurveys.

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“While health care reform has not yet been fully implemented, itappears to have distracted both employers and group benefitsbrokers in the past year. In addition, the uneven nature of theeconomic recovery and continuing high unemployment are limitingopportunities for growth in the group benefits market.”

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