December 11, 2020| By Kayla Rooney Life/Health Account Executive,
Portland
The results from our latest annual
U.S. Critical Illness Insurance Market Survey are worth a look as
favorable trends continue. 46 companies participated in this year’s
survey, with the results representing 81 products that are currently in
the market. The Group/Worksite segment of the market continues to represent the
vast majority of both new and in-force premiums.
Here are three important takeaways from the
survey. Many thanks to all those who took the time to participate.
1.
The market is still
growing!
For companies providing data for both 2018 and 2019, new sales
premium increased by a healthy 14% with policy/certificate counts increasing by
16%. The total reported Critical Illness sales premium was $801 million in
2019 for Traditional Individual and Group/Worksite products combined. In-force
policies/certificates were reported as being almost 6 million for 2019,
with nearly $2 billion in premium.
2.
Experience remains
favorable!
59% of participants said that reported claims for 2019 were
less than expected with the remaining 41% of participants stating that
claims matched expectation. Not a single participant reported claims
exceeding expectations.
3.
Emphasis on this
product is not waning.
In addition to new entrants, existing carriers continue to put an
emphasis on honing their products and boosting sales. According to our report,
51% of survey participants say they expect to increase their focus on
Critical Illness over the next few years, with the other 49% reporting
intentions to maintain a consistent level of product focus. More than
half (61%) of participating companies reported exceeding or meeting their
sales targets. Of the 46 participating companies, 26 currently offer one
Critical Illness product, 19 offer two products and the remaining company
offers three products. Additionally,
11 companies plan to make changes to their current
Group/Worksite offering.
The Critical Illness market continues to
navigate interesting challenges, whether it be COVID-19, changes to technology,
medical advancements, or competitive pressures. At Gen Re, we continue to
monitor these trends through our research capabilities and industry
discussions.
Gen Re delivers customized reinsurance programs
and risk management solutions for Supplemental Benefits carriers. Our research
offers valuable information and insights, which are available to both our
clients and survey participants. If you have any questions or would like to
learn more about the survey, please do not hesitate to contact us. To read more
highlights of the survey results, see our summary publication.
READ
FULL PUBLICATION Critical Illness Insurance –
Highlights of 2019 U.S. Market Survey
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