from the gen re disability and life fact books prepared for: gen re producer advisory board...
TRANSCRIPT
From the Gen Re Disability and Life Fact Books
Prepared for: Gen Re Producer Advisory Board
Marketplace Facts & Statistics
Proprietary and Confidential | © General Re Life Corporation
Market Profile
Presentation for Producer Advisory Board | 02/20113
Trend in LTD & STD Sales Premium Growth Rates
-10%
-5%
0%
5%
10%
15%
20%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
Gro
wth
Rat
e
Year
LTD Sales STD Sales
Source: Gen Re, 2009 U.S. Group Disability Market Survey(*2009 growth rates include new business on existing cases)
Proprietary and Confidential | © General Re Life Corporation
Market Profile
Presentation for Producer Advisory Board | 02/20114
Trend in LTD & STD Inforce Premium Growth Rates
-4%-2%0%2%4%6%8%
10%12%14%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Gro
wth
Rat
e
Year
LTD Inforce STD Inforce
Source: Gen Re, 2009 U.S. Group Disability Market Survey
Proprietary and Confidential | © General Re Life Corporation
Market Profile
Presentation for Producer Advisory Board | 02/20115
Trend in Basic Group Term Life Premium Growth Rates
Source: Gen Re, 2009 U.S. Group Life Market Survey(2009 new sales include new business on existing cases)
1%0%
-2%
9%
-5%
3%
6%
3%5%
0%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2005 2006 2007 2008 2009
New sales Inforce
Proprietary and Confidential | © General Re Life Corporation
Market Potential
Presentation for Producer Advisory Board | 02/20116
Employee Access and Participation in Insurance Benefits by Occupational Group, March 2009
Access:33%
58%
13%
32%23%
28%
39%
52%
23%
37% 37%
48%
59%
77%
36%
59% 57%66%
All workers Management, professional and
related
Service Sales and office Natural resources, construction and
maintenance
Production, transportation and material moving
Long-term disability Short-term disability Life
31%
55%
12%
31%
22%27%
38%
51%
21%
36% 36%
47%
57%
75%
33%
56% 54%
63%
All workers Management, professional and
related
Service Sales and office Natural resources, construction and
maintenance
Production, transportation and material moving
Participation:
Source: U.S. Department of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in Private Industry in the United States, released July 2009
Proprietary and Confidential | © General Re Life Corporation
Market Potential
Presentation for Producer Advisory Board | 02/20117
Employee Access and Participation in Insurance Benefits by Number of Employees, March 2009
Source: U.S. Department of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in Private Industry in the United States, released July 2009
18%27%
36%
60%
24%
36%47%
62%
39%
56%
71%
85%
1–49 50–99 100–499 500+
Long-term disability Short-term disability Life
17%26%
34%
57%
23%
35%45%
60%
36%
53%
68%
84%
1–49 50–99 100–499 500+
Access:
Participation:
Proprietary and Confidential | © General Re Life Corporation
Contributing Causes of Disability
Presentation for Producer Advisory Board | 02/20118
Top Ten New Long Term Disability Claims, 2005-2009
Source: Gen Re, U.S. Group Disability Rate & Risk Management Survey (Note: Percent of new claims as of 12/31 for each year listed; represents average for participating companies)
4.7%
2.5%
4.2%
6.8%
6.6%
7.6%
9.7%
11.2%
14.2%
26.0%
2.9%
2.4%
3.8%
7.0%
5.8%
7.7%
10.3%
11.2%
15.7%
27.1%
2.5%
2.9%
5.2%
6.9%
7.1%
8.8%
9.2%
10.9%
15.7%
24.5%
Pregnancy/Normal
Digestive System Diseases
Pregnancy/Complications
Nervous System Diseases
Mental Disorders
All Other
Circulatory System Diseases
Injury/Poisoning
Neoplasms/Cancer
Musculoskeletal/ Connective Tissue Diseases
Percent of Total New LTD Claims
200920072005
Proprietary and Confidential | © General Re Life Corporation
Contributing Causes of Disability
Presentation for Producer Advisory Board | 02/20119
Top Ten New Short Term Disability Claims, 2005-2009
Source: Gen Re, U.S. Group Disability Rate & Risk Management Survey (Note: Percent of new claims as of 12/31 for each year listed; represents average for participating companies)
4.5%
5.9%
5.8%
5.9%
7.8%
8.1%
7.9%
12.5%
14.2%
17.7%
4.1%
5.7%
5.6%
6.6%
7.7%
7.8%
7.3%
12.6%
16.4%
18.3%
4.1%
5.1%
5.5%
6.6%
7.6%
7.7%
8.8%
12.9%
13.6%
18.1%
Mental Disorders
Reproductive/Urinary Diseases
Circulatory System Diseases
Neoplasms/Cancer
Digestive System Diseases
All Other
Pregnancy/Complications
Injury/Poisoning
Pregnancy/Normal
Musculoskeletal/ Connective Tissue Diseases
Percent of Total New STD Claims
200920072005
Proprietary and Confidential | © General Re Life Corporation
63.5%69.7% 73.6% 77.6%
44.2%52.6% 58.0% 59.6%
0%
20%
40%
60%
80%
100%
25 35 45 55
Age When Disabled for 90 Days
Percentage still disabled at the end of 2 years and 90 days
Percentage still disabled at the end of 5 years and 90 days
Need For Insurance
Presentation for Producer Advisory Board | 02/201110
Average Duration for Long Term Disability
Source: Reprinted with permission of the publisher from the 2010 Field Guide to Estate, Employee & Business Planning, by Donald F. Cady, Copyright 2010, The National Underwriter Company, 1-800-543-0874 (Figures based upon Commissioners Disability Table and Commissioners 1980 Standard Ordinary Mortality Table)
Proprietary and Confidential | © General Re Life Corporation
Need for Insurance
Presentation for Producer Advisory Board | 02/201111
Level of Worker Concern with How to Pay Living Expenses in the Event of a Disability
Very concerned,
44%
Somewhat concerned,
38%
Not too concerned,
14%
Not at all concerned,
4%
Source: Council for Disability Awareness, Worker Disability Planning and Preparedness Study, 2008
“Eight in 10 workers are concerned about how they would pay
their living expenses if they had to miss work for six months or longer
due to disability.”
Proprietary and Confidential | © General Re Life Corporation
Need for Insurance
Presentation for Producer Advisory Board | 02/201112
2.2 2.3 2.2
5.65.3 5.3
1.0
2.0
3.0
4.0
5.0
6.0
LTD STD Life
Emplo
yee
Rating*
Likelihood of Using Benefits Financial Impact if Needed
Likelihood of Using Benefits vs. Perceived Financial Impact
Source: Sun Life Financial, Gen Re, Voluntary Benefits: Key Factors Influencing Employee’s Choices Study, 2010 (*Based on a scale with 7 being Significant and 1 being No Impact)
Proprietary and Confidential | © General Re Life Corporation
Need for Insurance
Presentation for Producer Advisory Board | 02/201113
An International Comparison–Life Expectancy at Birth
Source: U.S. Census Bureau, Statistical Abstract of the United States: 2011, International database *Projected data
49.2
66.5
74.578.2 79.4 79.9 81.1 81.7 82.2
51.4
69.7
76.079.5 80.7 81.1 82.0 82.5 82.9
40
50
60
70
80
90
South Africa India China United States Germany United Kingdom
France Australia Japan
Life
Exp
ecta
ncy
2010 2020*
Proprietary and Confidential | © General Re Life Corporation
Need for Insurance
Presentation for Producer Advisory Board | 02/201114
States with the Highest Age-Adjusted Death Rates, 2008*
Source: Miniño AM, Xu JQ, Kochanek KD; Deaths: Preliminary Data for 2008; National Vital Statistics Reports; Vol. 59 No. 2; Hyattsville, MD: National Center for Health Statistics, 2010*Projected data
849.9
868.2
889.7
899.2
901.2
922.0
930.3
932.2
950.0
958.1
750 800 850 900 950 1,000
District of Columbia
Nevada
Tennessee
Arkansas
Kentucky
Louisiana
Alabama
Oklahoma
Mississippi
West Virginia
Age-Adjusted Rate
Proprietary and Confidential | © General Re Life Corporation
Demographic & Economic Trends
Presentation for Producer Advisory Board | 02/201115
Personal Savings as a Percentage of Disposable Personal Income
Source: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts Table, released September 2010 (2010 data from January through June)
0%
2%
4%
6%
8%
10%
12%
’80 ’82 ’84 ’86 ’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ’06 ’08 ’10
9.8%
5.7%
Proprietary and Confidential | © General Re Life Corporation
Demographic & Economic Trends
Presentation for Producer Advisory Board | 02/201116
Household Income vs. Average Annual Expenditures
Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditures–2009, released October 2010 (Note: Income is before taxes; average number in consumer unit: persons–2.5, earners–1.3)
$58,712 $60,533 $63,091 $63,563 $62,857$46,4
09
$48,3
98
$49,6
38
$50,4
86
$49,0
67
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2005 2006 2007 2008 2009
Household Income Before Taxes Annual Expenditures