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Critical illness insurance in trouble in the third quarter of 2018

by

Alain Thériault

February 5, 2019 09:30

Photo : Freepik

In terms of new annualized premium sales of products critical illness insurance declined by 10% in Canada during the third quarter of 2018, compared to the third quarter of 2017, reveals LIMRA in its quarterly report.

The year 2018 was, however, started well, with sales growth of 8 % in its first quarter, compared to the first quarter of 2017. The results of the first three quarters of 2018 show, however, a 2% decrease in sales of critical illness insurance, compared to the first three quarters of 2017.

During this comparison period, the number of policies of critical illness insurance sold in Canada was down 5 %.

The largest decline in the third quarter

Force behind the growth in the first quarter, the critical illness insurance permanent is the product whose sales have fallen the furthest in the third quarter of 2018, or 19%, compared to the third quarter of 2017.

During this comparison period, the product leveled at period of payment limited has seen its sales of premium decline of 7 %, and those of the product under temporary renewable declined 4 %.

Author of the report of LIMRA, ” Canadian Individual Critical Illness Sales Survey, in 2018, Matthew Rubino has been reported that only seven of the 16 suppliers surveyed have achieved a growth in sales of critical illness insurance 1 January to 30 September 2018, compared to the same period of 2017.

The agents écopent

The first three quarters of 2018 have not smiled in the distribution network, captive insurers, when compared to their results of the same period in 2017. “The agents have been an important source of decline, with a decrease of 11 %,” reveals Mr. Rubino.

On the other hand, the independent network has seen its sales of critical illness insurance to grow 4% during this comparison period.

The independent network dominates the market share in terms of sales of critical illness insurance in Canada. During the first three quarters of 2018, they have produced 63.7% of sales. The network of affiliated agencies claimed the rest, that is, 36.4 per cent.

In both networks, the sales of the product leveled at limited period of time accounted for about half of total sales.

Read or reread the account of the report quarter of LIMRA on the sales of individual life insurance published yesterday on the website of the Journal of insurance.

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