Last year was a difficult year for the grouplife and disability market, as sales and inforce premium growthrates were either negative or in the low single digits, accordingto a report from Gen Re.

“Continued sluggish job growth and uncertainty around the fateof the Affordable Care Act are clearly influencing both employersand producers,” says Drew King, senior vice president, group &specialty division. “Voluntary results were better than traditionalgroup, as employers may be transferring costs and decision makingto employees.”

Carriers who participated in the company's 2011 U.S. group lifemarket and group disability market surveys reported more than $20.5billion in total group term life inforce premium, an increase of 3percent over 2010. Combined short-term and long-term disabilityinforce premium was up by just 1 percent, totaling close to $13.4billion.

STD inforce premium showed a 3 percent increase, while LTDinforce remained flat year-over-year. Compared to results for 2010,the total number of employers offering coverage fell slightly (by0.3 percent) for group term life, and increased by 1 percent forboth LTD and STD. The total number of insured employees rose byabout 1 percent for group term life, while STD and LTD increased by3 percent and 1 percent, respectively.

Group term life sales declined by around 2 percent in 2011, tojust under $2.3 billion. Reported volume for participating carriersshowed little change, decreasing by 0.2 percent. On new group termlife policies, the average face amount declined by close to 5percent, to $76,038 in 2011.

Increasing by 2 percent compared to last year, combined groupdisability (STD and LTD) sales premium reached almost $2 billion in2011. While STD sales were down by 1 percent, LTD sales increasedby 3 percent, an improvement over last year's decline.

The voluntary life and disability results were somewhat mixedfor 2011 but generally more favorable than traditional, the companynotes.

Voluntary sales premium for LTD, group life and AD&D wereall positive, with only voluntary STD showing a decline as comparedto 2010. Inforce results were also positive for all products withthe exception of voluntary LTD.