Loss Ratios - Long Term Individual Disability Insurance
As per the 2017 annual report of National Association of Insurance Commissioners (NAIC), the average loss ratio for individual long term disability insurance, for top 118 insurance companies, is 81.92%. Loss ratios for the year 2016 ranged from a low of 0% to a high of 5806.34%. The top ten insurers have a market share of around 90% and the loss ratios for these insurance companies range from a low of 28.49% to a high of 124.46%. Further, details of the loss ratios of individual long term disability insurance are given below.
The 2017 NAIC report, which covers data for 2016, provides a detailed report on the loss ratios of top 118 companies. As per the report, the average loss ratio for long term disability is 81.92% (page 102). This overall average was a bit lower than 2015, which was 82.34% (page 102).
As per a September 2016 survey by Millman, which covers top 15 individual disability insurers, loss ratios have been lower over the recent six months period.
Another 2016 report from Society of Actuaries, mentions a lowering trend in the loss ratios, from the highs of 109% in the early 2000s.
As per the 2017 NAIC report, loss ratios for the year 2016, ranged from a low of 0% to a high of 5806.34% (page 99-102). If we consider the top ten insurers, with around 90% of the market share, the range of loss ratios varies from a low of 28.49% (for Ameriprise Fin group) to a high of 124.46% (for Unum group).
For the year 2015, the range of loss ratios for top ten insurers varied from a low of 25.03% (Ameriprise Fin group) to a high of 130.32% (Unum Provident Corp group). [Page 99-102]
The top three companies, which constitutes a market share of more than 50%, have loss ratios viz. 50.37% (Northwestern Mutual group), 124.46% (Unum group), and 80.97% (Guardian Life group).