The incidence of long term disability claims is expected to decline in 2019 due to a slowing Canadian economy, says the RBC Insurance Group Long Term Disability (LTD) Forecast released April 8.
Using a proprietary algorithm, RBC Insurance says it has discovered that new LTD claims are linked to Gross Domestic Product (GDP) growth rates.
"The RBC Insurance Group LTD forecast predicts a 3.6% decrease in LTD incidence rates in 2019 relative to 2018 due to a forecasted deceleration in GDP," says John Carinci, Vice President, Operations and Client Experience, RBC Insurance. "While still elevated on an overall basis, 2019 nonetheless marks a directional shift after two consecutive years of growth."
LTD claims impact both employees and business owners alike, says the insurer. The LTD incidence forecast is aimed to help businesses better manage costs “and ensure employees get the support they need so they can return to work healthy and productive, minimizing the impact to daily business operations,” says the company.