Critical Illness

Gen Re Announces 2021 U.S. Critical Illness Insurance Market Survey Results

The CI market remains strong, with 2020 new sales and in-force premium showing increases over 2019 results despite a turbulent year for carriers

Gen Re’s U.S. Critical Illness Insurance Market Survey report provides insight into the state of the market, tracking sales and in‑force results for Traditional Individual, Group/Worksite Attained Age and Issue Age products, and Accident Insurance.

PORTLAND, Maine–(BUSINESS WIRE)–Gen Re has released results of the U.S. Critical Illness Insurance Market Survey. This annual survey covers Traditional Individual, Group/Worksite Critical Illness, and Accident products. The majority of new Critical Illness sales premium (89%) was attributed to Issue Age and Attained Age group/worksite products.

Thirty-nine carriers participated in this year’s survey, reporting $1.5 billion in Critical Illness in-force premium and $562 million in new sales for 2020.

Thirty-one carriers provided results for their Accident insurance product, reporting $1.5 billion in-force premium and $484 million in new sales for 2020.

Kayla Rooney, Supplemental Benefits Account Executive, commented: “Despite the many challenges that the pandemic brought to the Supplemental Health industry, particularly on the sales side, first-year premiums remained positive for Critical Illness, showing modest growth in 2020.”

Marketing Critical Illness Products

Of the 39 participating companies, 21 offer one Critical Illness product, 17 offer two products and the remaining company offers three products. The majority (32 or 82%) offer a Group/Worksite (G/W) product, with 15 companies offering both Attained Age and Issue Age CI.

In total, the results represent 77 products currently being marketed. While 7 companies plan to make changes to their current G/W offering, only one plans to modify their Traditional Individual product.

2020 Sales Results Compared to Goals

When asked how overall sales results compared to goals for 2020, 44% reported exceeding or meeting their sales targets.  For those companies that missed their goals, COVID-19 restrictions were sighted as having the most significant impact on results. Other negative impacts were attributed to competition, lack of flexibility in the market, and limited product flexibility.

Despite the many challenges that the pandemic brought to the Supplemental Health industry, particularly on the sales side, first-year premiums remained positive for Critical Illness, showing modest growth in 2020...

Average Age at Time of Sale

The issue age for new business averaged 43 years for all three products combined. Traditional Individual averaged the highest issue age at 47 years, compared to 42 years for both G/W Attained Age and Issue Age.

Key results from this year’s survey include:

  • In-force premium for all Critical Illness products combined increased 25% over 2019.
  • Group/Worksite Attained Age business accounted for 64% of the total policies/certificates sold in 2020.
  • 44% of respondents met or exceeded their Critical Illness sales goals for 2020.
  • Nearly half (46%) of companies expect to increase their focus on Critical Illness over the next few years.
  • For those carriers who provided Accident product data, in-force premium and policies grew 5% and 14% 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.

 

 

 

About Gen Re
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. Visit www.genre.com.