Disability Insurance in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS OD4761Revenue
$19.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
6,084
Businesses
33
Wages
$XXX.Xm
Disability Insurance in the US industry analysis
An aging population has supported the Disability Insurance industry over the last five years. Despite higher awareness of the seriousness of disabilities, rising national unemployment has hindered industry revenue. In addition, the pandemic resulted in a double-digit revenue decline in 2020. The pandemic produced a severe economic contraction and a record spike in unemployment, resulting in a single-year revenue decline of 10.6% in 2020. The median age of the population has continued to grow, benefiting the industry as those aged 65 and older are among the most likely to purchase disability insurance since they are more likely to become disabled through an injury or illness. Overall, disability insurance revenue has declined at a CAGR of 0.5% to $19.3 billion over the five years to 2024, including an expected increase of 0.7% in 2024 alone.
Trends and Insights
- An aging population proved to be beneficial for the industry over the last five years. Declining unemployment and relatively higher awareness of the seriousness of disabilities has fueled industry revenue growth until a reversal of such trends in 2020 due to the COVID-19 pandemic.
- Income plays a role in an individual's decision to purchase disability insurance. Consumers generally seek out industry operators to purchase disability insurance to gain further comfort knowing that their income will be supplemented in the event they become disabled and are unable to maximize their earnings potential.
- Operators typically locate their facilities close to downstream markets. As a result, population trends tend to dictate the geographic distribution of industry establishments.
- Operators that can expand their operations can achieve economies of scale faster, and in turn create lower costs and expand operations more efficiently. Insurers that can't achieve economies of scale will need to merge with larger operators, which increases market share concentration.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated $19.3bn in 2024.
Trends and Insights
An older population limits declines as rising unemployment drags down revenue
- Older individuals purchase disability insurance at higher rates as they're more at risk of serious injury. In the last five years, the median age of population increased in the United States.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Generating awareness for disability insurance will sustain revenue
- There is a great deal of room for expansion in the employer-sponsored disability insurance market. Disability insurers will likely invest in educating workers and employers about the costs of disability.
Biggest companies in the Disability Insurance in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
The Hartford Financial Services Group, Inc. | 3,641.8 | 169.6 | 4.7 | |
Unum Group | 3,251.7 | 209.7 | 6.4 | |
Prudential Financial, Inc. | 1,746.6 | 56.8 | 3.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Individual noncancelable disability insurance, Individual guaranteed renewable disability insurance and Group disability insurance. Individual noncancelable disability insurance is the largest segment of the Disability Insurance in the US.
Trends and Insights
Individual Insurance is determined by income
- Individual disability policies are generally offered in two forms: noncancelable and guaranteed renewable. Individuals prefer noncancelable policies over guaranteed renewable policies since there is less uncertainty.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Life Insurance & Annuities in the US
- Health & Medical Insurance in the US
- Workers' Compensation & Other Insurance Funds in the US
Complementors
- Property, Casualty and Direct Insurance in the US
- Health & Welfare Funds in the US
International industries
- Global Life & Health Insurance Carriers
- Health Insurance in Australia
- Health Insurance in New Zealand
- General Insurance in the UK
- Dental Insurance in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Underwriting short-term disability insurance policiesUnderwriting long-term disability insurance policiesCompanies
The Hartford Financial Services Group, Inc.Unum GroupPrudential Financial, Inc.Purchase this report to view all 4 major companies in this industry.
Related Terms
FEDERAL FUNDS RATEPRIME RATESHORT-TERM DISABILITY INSURANCELONG-TERM DISABILITY INSURANCEPAYOUT RATESTATUTORY CAPITALIDIOSYNCRATIC RISKIndustry Code
NAICS 52411 - Disability Insurance in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
An aging population proved to be beneficial for the industry over the last five years. Declining unemployment and relatively higher awareness of the seriousness of disabiliti...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Income plays a role in an individual's decision to purchase disability insurance. Consumers generally seek out industry operators to purchase disability insurance to gain fur...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Operators typically locate their facilities close to downstream markets. As a result, population trends tend to dictate the geographic distribution of industry establishments...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Operators that can expand their operations can achieve economies of scale faster, and in turn create lower costs and expand operations more efficiently. Insurers that can't a...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies are adapting to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to hel...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of The Hartford Financial Services Group, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Unum Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Prudential Financial, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for The Hartford Financial Services Group, Inc., and factors influencing its performance in the industry
- Description and key data for Unum Group, and factors influencing its performance in the industry
- Description and key data for Prudential Financial, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation plays an intricate role in the industry. The industry is highly regulated by states and, to a lesser extent, the federal government.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is one of the more volatile components of this industry's cost structure. It tends to fluctuate significantly on an annual basis because it depends on the industry's r...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Disability Insurance in the US industry in United States in 2024?
The market size of the Disability Insurance in the US industry in United States is $19.3bn in 2024.
How many businesses are there in the Disability Insurance in the US industry in 2024?
There are 33 businesses in the Disability Insurance in the US industry in United States, which has grown at a CAGR of 1.9 % between 2019 and 2024.
Has the Disability Insurance in the US industry in United States grown or declined over the past 5 years?
The market size of the Disability Insurance in the US industry in United States has been declining at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Disability Insurance in the US industry in United States over the next 5 years?
Over the next five years, the Disability Insurance in the US industry in United States is expected to grow.
What are the biggest companies in the Disability Insurance in the US market in United States?
The biggest companies operating in the Disability Insurance market in United States are The Hartford Financial Services Group, Inc., Unum Group and Prudential Financial, Inc.
What does the Disability Insurance in the US in United States include?
Underwriting short-term disability insurance policies and Underwriting long-term disability insurance policies are part of the Disability Insurance in the US industry.
Which companies have the highest market share in the Disability Insurance in the US in United States?
The company holding the most market share in United States is The Hartford Financial Services Group, Inc..
How competitive is the Disability Insurance in the US industry in United States?
The level of competition is high and steady in the Disability Insurance in the US industry in United States.
