Health Insurance Pressure Increases Critical Illness Demand – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Health/Employee Benefits News
Top Stories RSS Get our newsletter
Order Prints
November 30, 2015 Top Stories 1 comment
Share
Share
Tweet
Email

Health Insurance Pressure Increases Critical Illness Demand

By Cyril Tuohy

The critical illness (CI) market reported new business premium of nearly $381 million in 2014, a new study showed, as Americans search for creative insurance protection against high medical expenses.

In addition, the number of eligibility triggers for critical illness coverage rose last year to 19 from 13 in 2013, the Gen Re Critical Illness Insurance Market Survey revealed.

The survey covered 59 carriers making up 95 percent of the critical illness market. Of those 59 carriers, 41 were selling 73 different CI products and the remaining 18 carriers had not yet entered the CI market as of last year but were preparing to do so or exploring the feasibility of entering it.

Related stories

  • Nearly half of all gig workers have no access to health insurance
  • California offers health insurance for $10 a month. The deadline is days away

Of those 18 carriers, 79 percent cited a product diversification strategy as the reason to enter the market. Another 64 percent pointed to agent demand, 57 percent said it represented a differentiation strategy, and 43 percent said it was on account of consumer demand. Finally, 29 percent pointed to demand from their marketing departments and 21 percent indicated it was due to competitive pressures.

The group and worksite segments of the CI market are expected to see the strongest growth over the next three years, said Steve Rowley, life/health senior account executive for Individual Products.

Demand for critical illness coverage has been rising as employers shift more of the burden of paying for primary medical health insurance on employees.

Carriers have raised deductibles and out-of-pocket expenses, which has made coverage more expensive for employers and employees.

With more employees covered through high-deductible plans, for which a family deductible can surpass $13,000, employees see CI coverage as a way to supplement primary medical coverage.

“The unfortunate fact is that few (if any) of us have the comprehensive, low-deductible or co-pay plans that were common even just a few years ago,” said Rowley, in an Oct. 19 blog post on CI coverage.

CI coverage supplements protection necessary to pay for catastrophic medical events like cancer, heart attacks, stroke, kidney failure and organ transplants.

Most victims will survive the setbacks, but paying for follow-up expenses is only feasible through good medical coverage — and even that may sometimes not be enough unless covered by the supplemental coverage offered by CI.

The average brand name cancer drug in the U.S. costs $10,000 a month and 11 of 12 Food and Drug Administration-approved cancer drugs cost more than $100,000 a year, according to Gen Re.

More than two-thirds of bankruptcies results from medical bills and 52 percent of all debt on credit reports is medical debt, according to Gen Re.

InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].

© Entire contents copyright 2015 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Older

Expert Predicts Big Shakeout Among Roboadvisors

Newer

Women Advisors Tell Stories Of Working Their Way Through Loss

Advisor News

  • For some, nothing to fear from taking RMDs, professor says
  • Half of investors plan to work after retirement
  • Cetera to acquire Securian’s retail wealth business
  • Study: Education level should drive decisions on Social Security, annuities
  • Former California energy company exec given 5 years in prison for $15M investment fraud
More Advisor News

Annuity News

  • Investors scrambling to lock in rates propel annuity sales to record highs
  • North American and Annexus launch new fixed index annuity
  • Producers stew as insurers slow to process life and annuity applications
  • Substitute teacher wins massive lottery drawing in North Carolina. ‘Too good to be true’
  • Brad Rhodes: An annuity product many have never heard of
More Annuity News

Health/Employee Benefits News

  • Nearly half of all gig workers have no access to health insurance
  • California offers health insurance for $10 a month. The deadline is days away
  • Amazon announces service to deliver medications to your door. Here’s how it works
  • COVID-19Another COVID ‘new normal’: more Californians dying at home
  • Seven sentenced in conspiracy to defraud federal health insurance programs
More Health/Employee Benefits News

Life Insurance News

  • Cetera to acquire Securian’s retail wealth business
  • What does Curtis 'Cousin Eddie' Smith know in Murdaugh case?
  • Alex Murdaugh's murder trial starts with cellphones, bullets
  • Prosecutors, defense argue guns, bad acts in Murdaugh trial
  • Lincoln Financial Group offers new, fully automated life product, WealthAccelerate
Sponsor
More Life Insurance News
The time is 10:37:03pm test

- Presented By -

Top Read Stories

  • A Louisiana employer's health perks helped their workers lose weight. Here’s how.
  • US debt ceiling limit reached; Social Security, Medicare targeted
  • Former CEO of Texas beverage company sentenced to 10 years in prison for fraud
  • LETTER: FEMA flood insurance is all but worthless
  • Progressive online practices set example for agents, other carriers
More Top Read Stories >

FEATURED OFFERS

Grow life insurance sales in 2023 with middle-market clients

Tap a new source for sales and referrals with Allianz Life Insurance Company of North America.

Don't Miss ICMG 2023

When the success of your business depends on making the right connections, ICMG is the place to be.

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.