Disability Insurance in the US - Market Research Report (2014-2029)

In good hands: An aging population will support industry demand growth

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

An aging population proved to be beneficial for the Disability Insurance 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. The pandemic produced a severe economic contraction and a record spike in unemployment, resulting in a single-year revenue decline of 10.5% 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. Disability insurance revenue has been growing at an annualized 1.0% over the past five years - including an estimated 0.4% in the current year - and is expected to total $23.9 billion in 2023, with profit margins set to drop to 9.8%.

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.