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Gen Re Announces U.S. Medicare Supplement Market Survey 2020 Results

Ausgabe: September 2021 | Life/Health North America

In-force premium grew by 4% over 2019 for participating companies.

Portland, Maine, September 2, 2021 – Gen Re has released results of this year’s U.S. Medicare Supplement Market Survey, its annual industry benchmarking survey covering in-force, new sales, business performance, claim trends, lapse rates and rate filings for the U.S. market in 2020. Eighty-eight companies are represented in the report, including those with blocks of business that are currently open or closed, with 57% of the companies managing a combination of both. Excluding Blue Cross Blue Shield companies, Gen Re estimates that the survey includes approximately 89% of the Medicare Supplement market.

Key highlights from this annual benchmark report include:

  • Across all participants, $23.8 billion in total Medicare Supplement in-force premium was reported for 2020, an increase of almost 4% over reported results for 2019.
  • 87% of companies with open blocks and 89% with closed blocks of business reported that 2020 profitability increased compared to 2019.
  • Lapse rates, including mortality, averaged 11% for open blocks of business and 17% for closed blocks in 2020. When excluding mortality, lapse rates averaged 8% and 10%, respectively.
  • Plan G was the most popular plan sold in 2020, accounting for 63% of new sales premium and 64% of new lives covered.
  • Over 90% of the participating companies sell Medicare Supplement plans through independent agents, and 56% sell on a direct-to-consumer basis (via phone, mail, online, or a combination of these methods where a traditional agent receiving paid compensation is not involved). The percentage of sales premium from those two distribution channels averaged 84% and 27%, respectively.

The Market Survey is an annual benchmark survey produced by Gen Re, with the full results available only to participating companies. A summary report is available here.

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Gen Re, a Berkshire Hathaway Company, is one of the leading Life/Health and Property/Casualty reinsurers in the world. Our North American Life/Health reinsurance company, General Re Life Corporation, has superior financial strength ratings among Life and Health reinsurers. Gen Re delivers customized reinsurance programs and risk management solutions for the Life, Medicare Supplement, Critical Illness and Individual Disability Income markets. Through our research, we also offer valuable information and insights.

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