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Critical illness insurance continues its momentum

by

Alain Thériault

May 10, 2018 07:00

Photo : Freepik

Sales of critical illness insurance continue to grow. In terms of premiums, they have risen 8 % in 2017, compared to 2016, and 13% in the fourth quarter of 2017 compared to the fourth quarter of 2016.

Sales of critical illness insurance in terms of premiums totaled $ 142.2 million of dollars ($M) in 2017. After a first half of poor sales have bounced back in the second.

The product critical illness insurance leveled to limited period of time accounted for the largest volume, with premiums of 68.4 per$ Million or 48 % of total sales in 2017. The product critical illness insurance permanent has raised$ 48.3 Million in premiums, representing 34% of total sales. The product critical illness insurance is renewable, has collected premiums of 25.5 Million$, or 18% of total sales in 2017.

The number of policies of critical illness insurance sold grew 3 % in 2017, compared to 2016, to reach 128 991. Of this total, 52 490 are fonts serious illnesses renewable, representing a 41% share of sales. The product leveled at limited period of time has collected 51 179 fonts, a share of 40 %. The product standing in a harvested 25 322, a share of 19 %.

Billion in sales approach

This market, which totaled just over$ 86 Million of premiums in force 15 years ago, has almost crossed the mark of one billion dollars by the end of 2017, with combined premiums of$ 945 Million at December 31, 2017. The number of policies in force amounted to 874 554 on the same date.

The product leveled at limited period of time has retained the largest share of this effect at the end of 2017, with premiums of 430,2 Million and$ 395 749 fonts. The premiums in force of the permanent establish 321,5 M$. The number of policies in force is 182 849. The revolving product account, less of in-force premiums as the product standing, but most of the fonts that the product permanent. Premium account for 193 Million and$ it totals 295 956 fonts.

The product critical illness insurance is renewable, it loses popularity. In terms of premiums, it is the only one of the three types of products to see a decline in sales by 2017, compared to 2016.

«The premiums have increased for both permanent product and levelled to a limited period, but renewable products declined, ending the year down 7 %,» commented Matthew Rubino, author of the report from LIMRA. For the fourth quarter alone, the decline in sales of the product renewable has reached 20 %.

The failure of the revolving product seems to come from the distribution network of exclusive agents, in which sales of this product decreased by 20 % in 2017, compared to 2016. In the independent network, they have stagnated during this period.

The permanent critical illness insurance has performed particularly well, as its sales in terms of premiums increased 13 % in 2017, compared to 2016. For the fourth quarter of 2017, the growth of its sales has reached 33 % compared to the same quarter of 2016.

The independent distribution network has experienced solid results with this product, of which sales in terms of premiums increased 20 % in the fourth quarter of 2017, compared to the same quarter of 2016. The exclusive network has seen sales of this product grow by 4% during this period.

The product critical illness insurance leveled to limited period of time also makes a good figure. In terms of premiums, the growth of its sales has reached 11 % in 2017, in the face of 2016. For the fourth quarter of 2017, the sales growth of this product has reached 14 %, compared to the fourth quarter of 2016.

The exclusive network has had its best success with this product, he has grown sales by 16% in 2017, compared to 2016. The independent network is growing sales of this product to 7 %, during the same period.

The independent sell more

Between 2016 and 2017, the independent network has experienced a sales growth of 9 % in terms of premiums. For its part, the network of exclusive agents, has seen a sales growth of 5 % during this comparison period.

Both in the one and the other of the networks, the amount of critical illness insurance average subscribed by the insured amounted to 76 230 $ in 2017. They have signed up for more protection within of the product standing, the average coverage has reached 99 413 $. The average coverage product leveled at limited period of time has reached 78 116 $, and that of the product renewable 63 208 $.

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