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From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics
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From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Mar 26, 2015

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Page 1: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

From the Gen Re Disability and Life Fact Books

Prepared for: Gen Re Producer Advisory Board

Marketplace Facts & Statistics

Page 2: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Market Profile

Presentation for Producer Advisory Board | 02/20113

Trend in LTD & STD Sales Premium Growth Rates

-10%

-5%

0%

5%

10%

15%

20%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

Gro

wth

Rat

e

Year

LTD Sales STD Sales

Source: Gen Re, 2009 U.S. Group Disability Market Survey(*2009 growth rates include new business on existing cases)

Page 3: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Market Profile

Presentation for Producer Advisory Board | 02/20114

Trend in LTD & STD Inforce Premium Growth Rates

-4%-2%0%2%4%6%8%

10%12%14%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gro

wth

Rat

e

Year

LTD Inforce STD Inforce

Source: Gen Re, 2009 U.S. Group Disability Market Survey

Page 4: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Market Profile

Presentation for Producer Advisory Board | 02/20115

Trend in Basic Group Term Life Premium Growth Rates

Source: Gen Re, 2009 U.S. Group Life Market Survey(2009 new sales include new business on existing cases)

1%0%

-2%

9%

-5%

3%

6%

3%5%

0%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2005 2006 2007 2008 2009

New sales Inforce

Page 5: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Market Potential

Presentation for Producer Advisory Board | 02/20116

Employee Access and Participation in Insurance Benefits by Occupational Group, March 2009

Access:33%

58%

13%

32%23%

28%

39%

52%

23%

37% 37%

48%

59%

77%

36%

59% 57%66%

All workers Management, professional and

related

Service Sales and office Natural resources, construction and

maintenance

Production, transportation and material moving

Long-term disability Short-term disability Life

31%

55%

12%

31%

22%27%

38%

51%

21%

36% 36%

47%

57%

75%

33%

56% 54%

63%

All workers Management, professional and

related

Service Sales and office Natural resources, construction and

maintenance

Production, transportation and material moving

Participation:

Source: U.S. Department of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in Private Industry in the United States, released July 2009

Page 6: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Market Potential

Presentation for Producer Advisory Board | 02/20117

Employee Access and Participation in Insurance Benefits by Number of Employees, March 2009

Source: U.S. Department of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in Private Industry in the United States, released July 2009

18%27%

36%

60%

24%

36%47%

62%

39%

56%

71%

85%

1–49 50–99 100–499 500+

Long-term disability Short-term disability Life

17%26%

34%

57%

23%

35%45%

60%

36%

53%

68%

84%

1–49 50–99 100–499 500+

Access:

Participation:

Page 7: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Contributing Causes of Disability

Presentation for Producer Advisory Board | 02/20118

Top Ten New Long Term Disability Claims, 2005-2009

Source: Gen Re, U.S. Group Disability Rate & Risk Management Survey (Note: Percent of new claims as of 12/31 for each year listed; represents average for participating companies)

4.7%

2.5%

4.2%

6.8%

6.6%

7.6%

9.7%

11.2%

14.2%

26.0%

2.9%

2.4%

3.8%

7.0%

5.8%

7.7%

10.3%

11.2%

15.7%

27.1%

2.5%

2.9%

5.2%

6.9%

7.1%

8.8%

9.2%

10.9%

15.7%

24.5%

Pregnancy/Normal

Digestive System Diseases

Pregnancy/Complications

Nervous System Diseases

Mental Disorders

All Other

Circulatory System Diseases

Injury/Poisoning

Neoplasms/Cancer

Musculoskeletal/ Connective Tissue Diseases

Percent of Total New LTD Claims

200920072005

Page 8: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Contributing Causes of Disability

Presentation for Producer Advisory Board | 02/20119

Top Ten New Short Term Disability Claims, 2005-2009

Source: Gen Re, U.S. Group Disability Rate & Risk Management Survey (Note: Percent of new claims as of 12/31 for each year listed; represents average for participating companies)

4.5%

5.9%

5.8%

5.9%

7.8%

8.1%

7.9%

12.5%

14.2%

17.7%

4.1%

5.7%

5.6%

6.6%

7.7%

7.8%

7.3%

12.6%

16.4%

18.3%

4.1%

5.1%

5.5%

6.6%

7.6%

7.7%

8.8%

12.9%

13.6%

18.1%

Mental Disorders

Reproductive/Urinary Diseases

Circulatory System Diseases

Neoplasms/Cancer

Digestive System Diseases

All Other

Pregnancy/Complications

Injury/Poisoning

Pregnancy/Normal

Musculoskeletal/ Connective Tissue Diseases

Percent of Total New STD Claims

200920072005

Page 9: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

63.5%69.7% 73.6% 77.6%

44.2%52.6% 58.0% 59.6%

0%

20%

40%

60%

80%

100%

25 35 45 55

Age When Disabled for 90 Days

Percentage still disabled at the end of 2 years and 90 days

Percentage still disabled at the end of 5 years and 90 days

Need For Insurance

Presentation for Producer Advisory Board | 02/201110

Average Duration for Long Term Disability

Source: Reprinted with permission of the publisher from the 2010 Field Guide to Estate, Employee & Business Planning, by Donald F. Cady, Copyright 2010, The National Underwriter Company, 1-800-543-0874 (Figures based upon Commissioners Disability Table and Commissioners 1980 Standard Ordinary Mortality Table)

Page 10: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Need for Insurance

Presentation for Producer Advisory Board | 02/201111

Level of Worker Concern with How to Pay Living Expenses in the Event of a Disability

Very concerned,

44%

Somewhat concerned,

38%

Not too concerned,

14%

Not at all concerned,

4%

Source: Council for Disability Awareness, Worker Disability Planning and Preparedness Study, 2008

“Eight in 10 workers are concerned about how they would pay

their living expenses if they had to miss work for six months or longer

due to disability.”

Page 11: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Need for Insurance

Presentation for Producer Advisory Board | 02/201112

2.2 2.3 2.2

5.65.3 5.3

1.0

2.0

3.0

4.0

5.0

6.0

LTD STD Life

Emplo

yee

Rating*

Likelihood of Using Benefits Financial Impact if Needed

Likelihood of Using Benefits vs. Perceived Financial Impact

Source: Sun Life Financial, Gen Re, Voluntary Benefits: Key Factors Influencing Employee’s Choices Study, 2010 (*Based on a scale with 7 being Significant and 1 being No Impact)

Page 12: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Need for Insurance

Presentation for Producer Advisory Board | 02/201113

An International Comparison–Life Expectancy at Birth

Source: U.S. Census Bureau, Statistical Abstract of the United States: 2011, International database *Projected data

49.2

66.5

74.578.2 79.4 79.9 81.1 81.7 82.2

51.4

69.7

76.079.5 80.7 81.1 82.0 82.5 82.9

40

50

60

70

80

90

South Africa India China United States Germany United Kingdom

France Australia Japan

Life

Exp

ecta

ncy

2010 2020*

Page 13: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Need for Insurance

Presentation for Producer Advisory Board | 02/201114

States with the Highest Age-Adjusted Death Rates, 2008*

Source: Miniño AM, Xu JQ, Kochanek KD; Deaths: Preliminary Data for 2008; National Vital Statistics Reports; Vol. 59 No. 2; Hyattsville, MD: National Center for Health Statistics, 2010*Projected data

849.9

868.2

889.7

899.2

901.2

922.0

930.3

932.2

950.0

958.1

750 800 850 900 950 1,000

District of Columbia

Nevada

Tennessee

Arkansas

Kentucky

Louisiana

Alabama

Oklahoma

Mississippi

West Virginia

Age-Adjusted Rate

Page 14: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Demographic & Economic Trends

Presentation for Producer Advisory Board | 02/201115

Personal Savings as a Percentage of Disposable Personal Income

Source: U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts Table, released September 2010 (2010 data from January through June)

0%

2%

4%

6%

8%

10%

12%

’80 ’82 ’84 ’86 ’88 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04 ’06 ’08 ’10

9.8%

5.7%

Page 15: From the Gen Re Disability and Life Fact Books Prepared for: Gen Re Producer Advisory Board Marketplace Facts & Statistics.

Proprietary and Confidential | © General Re Life Corporation

Demographic & Economic Trends

Presentation for Producer Advisory Board | 02/201116

Household Income vs. Average Annual Expenditures

Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditures–2009, released October 2010 (Note: Income is before taxes; average number in consumer unit: persons–2.5, earners–1.3)

$58,712 $60,533 $63,091 $63,563 $62,857$46,4

09

$48,3

98

$49,6

38

$50,4

86

$49,0

67

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2005 2006 2007 2008 2009

Household Income Before Taxes Annual Expenditures