Perspective

The U.S. Critical Illness Market Remains Strong

December 11, 2020| Von Kayla Rooney | Critical Illness | English

Region: North America

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.

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  1. 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.

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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.

 

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