Research using a proprietary algorithm developed by RBC Insurance shows that group long term disability (LTD) incidence rates will rise and fall with the cyclical movement of gross domestic product (GDP). Contrary to what you may think, as GDP accelerates or the economy grows, there is an increase in the incidence of LTD claims. When GDP drops, so do the incidence of claims. Using the RBC Insurance Group LTD Forecast to predict disabilities can help businesses manage costs related to claims, retain employees and ensure adequate staffing during critical seasons, while better supporting those employees when they need it most.
For the full article see Multi-year RBC Insurance research shows long term disability claims linked to GDP