March 13, 2018 07:00
After having spent two quarters in the beautiful sets, the sales of critical illness insurance have bounced back in the third quarter of 2017.
This increase is experienced both in terms of new annualized premium that the number of policies. In terms of premiums, the sales of critical illness insurance have ended up 15 % in the third quarter of 2017, compared to the same period of 2016, according to the latest report from LIMRA. On an annualized basis, it has sold $ 35.8 million (M$) life insurance premiums of serious diseases in the third quarter of 2017, all products combined.
The sales of the products permanent, and period level limited have increased respectively by 21 % and 18 % at the end of this period of comparison. The product renewable term, however, has seen its sales fall by 3 % during this period.
In a calculation of the growth spread over the first three quarters of 2017, compared to the same period in 2016, the growth in terms of new annualized premium reached 5 %. The number of new fonts is 3 %.
The sales of the products permanent, and period level limited have increased respectively by 4% and 9 % at the end of this period of comparison. The product renewable term, however, has seen its sales shrink by 2% during this period.
The amount of coverage critical illness insurance underwritten during this period has averaged 75 046 $. The larger amounts of coverage are purchased in the form of permanent insurance and time period level, that is, on average 93 523 and $ 75 828 $, on average. The average amount in the temporary was $ 66 166 $.
The in-force premiums of critical illness insurance have reached 919 487$ M 30 September 2017. The number of policies in force has reached 842 306 to this date. The sales of the product at period level limited, are the source of the largest volume of premiums in force, or nearly 419 Million$. They also raise the more large number of fonts, nearly 385 000.
During the first three quarters of 2017, the networks, captive and independent have both seen a growth in their premiums of 5 %, compared to the same period of 2016.
These two networks sell a majority of products in limited period of time level. The network captive has experienced a 12% growth in its premiums in this product during the period of comparison. The independent network has for its part experienced a growth of 6 % for this product, during the same period. It has, however, surpassed the results of the agents career, with sales of permanent insurance, an increase of 6% compared to 1 %. This network has stood up better than the network as a captive to the decay of the revolving product, with sales growth of 0.5 %, against a decline of 6 % to the agents attached to them.
The growth, however, is not at the rendez-vous for all providers. According to the author of the report, Matthew Rubino, a little less than half of the insurers have experienced a rise in their insurance premiums of serious diseases, in the first three quarters of 2017, compared to the same period of 2016.