Well insured: Rising employment and corporate profit are expected to benefit the industry

The Disability Insurance industry provides long-term and short-term disability insurance. Over the past five years, this industry has gained greater market penetration. Declining unemployment and relatively higher awareness of the consequences of disability have fueled industry revenue growth. In the coming years, this industry is expected to grow more slowly and closer to its historical average. By 2021, the industry is expected to consolidate and operators are likely to increase their capital expenditure to achieve greater operational efficiencies...purchase to read more.

Industry Statistics & Market Size
Revenue
$29bn
Annual Growth 11-16
0.7%
Forecast Growth 16-21
Profit
Employment
11,772
Businesses
26

Industry Threats & Opportunities

  • An anticipated increase in employer-sponsored coverage is expected to boost industry revenue
  • The industry benefited from a falling unemployment rate
  • Rising demand for disability insurance is expected to boost this industry’s demand for labor
  • Industry Report - Industry Locations Chapter

    Operators in the Disability Insurance industry typically locate their facilities in close proximity to downstream markets. As a result, population trends tend to dictate the geographic distribution of industry establishments. The Southeast region, which accounts for the largest share of the US population, is also expected to account for the largest share of industry establishments, at 24.0%. Following this trend, the Mid-Atlantic and West regions are also popular destinations for industry operators, accounting for 18.6% and 12.7%, respectively.In terms of states with the largest share of industry establishments, California remains the most prominent destination. California, which holds 12.1% of the US population, is expected to account for 8.5% of total industry establishments. Mor...purchase to read more.

    Additional Insights for the Disability Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Disability Insurance Industry are

  • Financial strength
  • Must comply with government regulations
  • Effective asset management
  • IBISWorld analysts also discuss how external factors such as Investor uncertainty and Number of employees in the Disability Insurance industry impact industry performance..

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    What's in this report

    What is the Disability Insurance Industry?

    This industry underwrites (i.e. assuming the risk and assigning premiums) disability insurance policies. Disability insurance insures the beneficiary’s earned income against the risk that a disability will render them unable to find full-time work in their chosen field. However, if an insured individual is deemed capable of working part time in a different field, they may not realize the full benefit of the insurance policy.

    Industry Products
  • Noncancellable
  • Guaranteed renewable
  • Buy-sell
  • Industry Activities
  • Underwriting short-term disability insurance policies
  • Underwriting long-term disability insurance policies
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Investor uncertainty
  • Number of employees
  • Yield on 10-year Treasury note
  • Corporate profit
  • Per capita disposable income
  • S&P 500
  • Median age of population

  • Current Performance
  • Misconceptions of disability
  • Growth opportunities
  • Operational efficiencies and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Landscape changes
  • Generating awareness
  • Table: Disability Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Disability Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Noncancellable
  • Guaranteed renewable
  • Buy-sell
  • Chart: Disability Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 64 and over
  • Individuals aged 18 to 64
  • Individuals aged 17 and under
  • Chart: Major Market Segmentation for the Disability Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages and commissions
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Disability Insurance

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Disability Insurance Industry

  • Industry Globalization
    UnitedHealth Group Inc., Anthem Inc., Unum Group, Aetna Inc., Metropolitan Life Insurance Company,
  • Table: UnitedHealth Group Inc. - financial performance
  • Table: Anthem Inc. - financial performance
  • Table: Unum Group - financial performance
  • Table: Aetna Inc. - financial performance
  • Table: Metropolitan Life Insurance Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Disability Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Disability Insurance Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of work-related deaths (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Elimination Period
  • The period in which an individual sustains an injury or illness and receives benefit payments from an insurer.
  • Federal Funds Rate
  • The Federal Funds Rate refers to the interest rate at which banks lend to each other, their balances held at the Federal Reserve, usually for an overnight period on an uncollateralized basis.
  • Idiosyncratic Risk
  • Risk that is specific to an asset class. It has little or no correlation with the market risk and hence can be eliminated from a portfolio by diversifying the assets/securities that comprise it.
  • Indemnity
  • Compensation for damages or a particular loss in exchange for premiums paid by the insured to the insurer.
  • Long-Term Disability Insurance
  • Long-term disability insurance refers to an insurance policy whose benefits kick in between 70 to 90 days after the disability occurs.
  • Payout Rate
  • In the context of this industry, the payout rate refers to the amount of income insured against disability, which usually ranges between 60.0% to 70.0% of an individual's monthly salary.
  • Prime Rate
  • The rate at which banks lend money to their most creditworthy customers.
  • Short-Term Disability Insurance
  • Short-term disability insurance refers to an insurance policy whose benefits start flowing in between the day a person gets disabled and a week from when the disability occurs.
  • Statutory Capital
  • The amount of capital required in order for an insurance company to retain its license to do business.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Disability Insurance can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Disability Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Disability Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Disability Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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