In mid-year 2010, group-term life annualized sales premium decreased by 3 percent from 2009, totaling more than $1.2 billion. With a 7 percent increase, however, total new sales volume nearly reached $397 billion. For a new group-term life policy in mid-year 2010, the corresponding average face amount hit $78,233, resulting in a 17 percent increase for companies reporting both years.

New annualized premium for short- and long-term group disability saw a 17 percent decline from 2009's mid-year results, accumulating more than $1.1 billion. The short-term disability sales premium was down by approximately 8 percent, though the new long-term disability sales premium faced a sharper decline at 21 percent.

"After a tough year in 2009, sales and premium growth in the group life and disability market continued to be a challenge during the first half of 2010," says Drew King, president of JHA. "Slow economic growth, continuing high unemployment, and uncertainty about health care reform are combining to reduce sales and enforce growth opportunities for most carriers. The difficult environment is also impacting voluntary and worksite sales, even as many employers shift benefit costs and decisions to their employees."

In the group life survey, 30 carriers participated to represent nearly 80 percent of the market while slightly over 95 percent of the group disability market was represented by 27 carriers.