Premium
Critical Illness Insurances: Challenges and Opportunities for Insurers
Author(s) -
Gatzert Nadine,
Maegebier Alexander
Publication year - 2015
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/rmir.12033
Subject(s) - actuarial science , order (exchange) , business , relevance (law) , product (mathematics) , insurance policy , market penetration , economics , finance , marketing , political science , geometry , mathematics , law
Since the first introduction of critical illness insurance in 1983 in South Africa, the product has successfully spread to some insurance markets, especially in Asian and Anglophone countries, but market penetration remains low in other countries. For this reason and because of the increasing relevance of dread diseases, the aim of this article is to provide a first comprehensive overview of challenges and opportunities associated with critical illness products for insurers. Toward this end, we first present the various product designs, as well as the developments that have taken place within the market before comparing this form of coverage to alternative insurance products in order to better assess the market potential. Based on these assessments, we thoroughly discuss the major challenges and opportunities within the market from the insurer's perspective.