Disability Premiums up, ASO Sales Down

April 20, 2001 - (PLANSPONSOR.com) - Fully-insured premiums increased in 2000 for both long-term and short-term disability insurance, while sales in Administrative Services Only contracts declined for both categories.

In long-term disability products:

  • Fully-insured sales increased 14%
  • and Administrative Services Only sales fell by 35%

For short-term disability products:

  • Fully-insured premiums were up 6%,
  • while Administrative Services Only sales were down 9%

In addition:

  • three out of five new sales were made by the top five writers, down 9% from 1999,
  • while, the top 10 writers accounted for 81% of new sales.

Some carriers introduced new features to their LTD offerings in 2000, including:

  • access to counseling,
  • financial and legal advice,
  • increased benefit levels