Group disability insurance is one of the top benefits a company can offer employees. Many of our California readers receive this coverage through their employer, however, this is not the case across the board. There are many companies that do not offer disability insurance, forcing individuals who want coverage to purchase it on their own.
Fortunately, it appears that the group disability insurance market is on the rise. According to recent reports, both the Principal Financial Group Inc. and Hartford Financial Services Group Inc. showed an uptick in activity during the fourth quarter of 2013.
Hartford reported $52 million in new disability plan administration and group disability sales last quarter. This is an increase of $33 million when compared to new group disability sales during the third quarter of 2012.
There are many potential reasons for the growth, with Hartford noting “strong disability loss ratios, reflecting improved long-term disability recoveries, lower incidence trends, and improving pricing” led to an increase in overall sales.
The Principal Financial Group did not experience such a large increase, but did report group disability sales of $12.4 million, which is up from $11.9 million.
It is good to see that group disability insurance sales are on the rise, as this means a growing number of people are receiving benefits through their employer. This gives them peace of mind, while also helping companies better attract top talent.
In the event that a disability insurance claim is denied, the employee has the right to consult with an employment law attorney who can review the situation and make suggestions on how to collect.
Source: Life Health Pro, “Insurers report disability sales gains” Allison Bell, Feb. 04, 2014