Disability insurance carrier challenges

by Guest » Tue Dec 23, 2008 08:41 am
Guest

Hi,
The other day I was going through an article and I got the hint that disability carriers are now facing up hill challenges to get good returns. Is it true!
If at all, could it be the outcome of more claims getting filed?
Or do I suppose that there has been an increase in the stretch of such phases?
I'd love to know more about the challenges faced by these upcoming insurance sectors, even before I could decide upon stepping into this industry as a professional.
Arnold_Ferguson

Total Comments: 4

Posted: Tue Dec 23, 2008 12:35 pm Post Subject:

Hi!

There could have been significant causes-

* The industry has certainly experienced a considerable drop in interest rates.
* The absence of relevant actuarial stats.
* Higher agents' commissions and a bit of underwriting negligence also contributed towards it.

Fatman

Posted: Fri Jan 23, 2009 03:13 am Post Subject:

There may also be more people who file claims for disability in a recession. They may also receive payments for longer periods of time.

When there are fewer jobs there are more people who will make claims for disability. Often quite legitimately, but sometimes not.

The person who might have gone back to work early against doctor's orders won't do so if there is no job to go back to.

Posted: Fri Jan 23, 2009 05:44 am Post Subject:

Hi Alston,

Often quite legitimately, but sometimes not.


That's there for sure!
It would be good for many if you could share with us the nature of such disability claims as may be filed under the recession. It would be important for us to understand how such claims could be different from the general disability claims. If you'd feel like stating it with a couple of case studies it might come to good use for many of our community friends.
ArindamSenIndies

Posted: Fri Jan 23, 2009 08:42 am Post Subject:

Alston, can people file disability claim if they are laid-off? Aren't they suppose to file under the UI benefits for this purpose? If I'm getting it right then many of these claims are simple insurance frauds. What do you say? or, is there a particular reason for the disability claims to increase during the period of recession?

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