The 2011 Council for Disability Awareness Long-Term Disability Claims Review is an annual review of LTD claims by the Council for Disability Awareness – an association of fourteen of the largest Long Term Disability insurance companies. The study looks at claims data gathered by the organization from 2010, seeking to identify continuing and new trends.
Despite the fact that these types of studies tend to be self-serving, we thought there were some interesting facts emerging:
From 2009 – 20010, claims payments increased by 1% – but 56% of all participating companies reported an increasing number of claims. That tells us that more people are making claims, but fewer are being paid. That’s what we are seeing in our office, and we haven’t done a survey.
0.6% fewer employers offered group long term disability insurance in 2010 compared to 2009. That sounds like most companies are doing what they can to continue to provide this benefit. Disability insurance is an important benefit for anyone who gets a paycheck.
Musculoskeletal system and connective tissue diseases continue to be the leading cause of new disability claims approved during 2010 – about 30%. Our office receives a lot of calls from people with back, neck, shoulder and joint disabilities, so we are not surprised to read that.
Finally, we were dismayed to read, way at the bottom of the survey, that the companies that participate in this survey “may vary from year to year” – and that “some companies may adjust prior years’ data.” Our favorite bit of obtuse insurance company-style language:
For these reasons, year-over-year comparisons within each year’s claims
review are valid; however, comparing some data within the 2011 report to
data in prior years’ reports may not be valid.
If you are having trouble making sense of your long term disability insurance policy, call our office today to find out how we can help.