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Best's ReviewVol. 107 Nbr. 7, November 2006

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Summary


Today's employee-benefits environment is affected by several global trends that will continue to challenge the disability insurance market. An aging population, current health and lifestyle patterns, as well as rising health-care costs and pension expenses are influencing the direction of the industry. The ramifications of these trends are worrisome for disability carriers, with even greater repercussions for employers. Disability carriers must respond to these trends. The current environment requires them to be on the front line in developing new products that provide greater employer and employee choice with respect to both coverage and funding options. The opportunities will be great for brokers who capitalize on the coming new array of product forms and underwriting techniques that will allow for a wide set of price points. Producers who align themselves with disability carriers who can provide products and services that address these macro trends can look forward to thriving in today's evolving disability market.

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Call to Action

Today's employee-benefits environment is affected by several global trends that will continue to challenge the disability insurance market. An aging population, current health and lifestyle patterns, as well as rising health-care costs and pension expenses are influencing the direction of the industry. Four trends in particular are impacting disability income protection underwriting and risk dynamics.

Aging Work Force

Most brokers today are aware that the U.S. population is aging, but they may not realize the full significance of this demographic for their corporate business. Bet...

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