Another thing we can blame on the economy: The U.S. individualdisability income market's combined premiums dropped for the secondconsecutive year as a result of poor economic conditions. Butthere's good news: The drop from 2009 to 2010 (3.4 percent) wassignificantly lower than the previous year (12.5 percent) signalingfuture sales may be on the rebound.

This information comes from a 2011 survey by Milliman of the IDImarket. Although the economy has caused depressed sales, it has notresulted in unfavorable claim trends—the survey found there is anunderlying strength in claim experience and overallprofitability.

Additionally, new premium on policies sold to physicianscontinues to grow, both in absolute dollars and as a percentage oftotal new premium for the industry. The growing prevalence of IDIsales to those in medical occupations is similar to sales patternsprior to catastrophic financial losses of the mid-1990s, Millimanreports.

More aggressive competitiveness among IDI carriers in recentyears has been disconcerting to many contributors who fear a returnto the hyper-competitive pressures experienced during the 1980s andearly 1990s. Besides competitive pressures, insurers say theeconomy as well as aging or uninterested producers is an obstacleto long-term financial health of the IDI market.

Milliman surveyed 15 insurance companies, which they sayrepresent 90 percent to 95 percent of traditional IDI new business,about business issued between 2002-10, the distribution of salesamong key marketing segments, current underwriting requirements,product offerings and market trends.