While disability insurance companies continue to be tight-fisted with their benefits for injured or chronically ill claimants, the annual study conducted by General Re shows that income for the disability carriers in 2012 was better than 2011.
From the thirty one companies that responded regarding LTD policies in 2012, LTD premiums for 2012 were a staggering $9.905 BILLION dollars. That’s a very profitable business model, even when costs and expenses of running these large companies are taken into consideration.
Premium growth did take a nosedive in 2009, but is working its way upwards since then. Group disability sales for 2012 grew from 2011. The report crows that new sales premiums for LTD and STD (Short Term Disability) grew at the highest rate seen in five years.
The top four LTD companies took the lion’s share of the LTD group premiums:
Unum remains at the top of the list, with 16.2% of the market. Hartford comes in second, at 11.6% of the market; MetLife is third with 11% and Cigna with 10.9%, is number four. These companies are emblematic of the disability insurance industry; although smaller players may not have their heft in moving markets, they tend to follow each other in regard to practices.
Recently Cigna has shown up on our radar as trying to settle claims, often for far below their value. It is likely that the other disability insurance companies may take a page from Cigna and give this a try as well. If you are being offered an opportunity to settle a claim and the numbers just don’t seem to make sense, it is likely that they are trying to take advantage of your short term needs.
An experienced disability attorney will be able to run the numbers to give you a true value of the policy and help negotiate a more appropriate and sustainable settlement. Call our office today at 877-LTD-CLAIM (877-583-2524) to learn how we can help you.