CSG Actuarial compiled historical quarterly premium results of some of the leading supplemental health carriers in the country. The supplemental health market has been a growing market and CSG Actuarial expects continued growth as carriers try to diversify away from the risk of the individual major medical market and as employers add worksite supplemental products for employee benefits. While there are many companies finding success in these markets CSG Actuarial analyzed the first quarter premium results of four of the larger supplemental health producers: Aflac, Colonial Life and Accident, Washington National and Torchmark.
Aflac (US Operations)
Aflac is the leader in the supplemental health market with total earned premium of just over $4.99 billion for 2012. Aflac reported total earned premiums of $1.28 Billion for first quarter 2013 a 4% increase compared to first quarter 2012. Aflac has increased their quarterly earned premiums by $493 million since first quarter 2005, an average annual growth rate of 6%.
85% of Aflac’s first quarter new business premium consisted of Short-term disability, Accident, Critical Care and Hospital Indemnity combined.
Colonial Life and Accident Company (a segment of Unum)
Colonial Life & Accident Company (segment of Unum) reported premium income for their Accident, Sickness, Disability, Cancer and Critical Illness products of over $250 million in first quarter 2013 a 3% increase compared to first quarter 2012. Colonial Life & Accident has increased their quarterly supplemental health premium by just under $80 million since first quarter 2006, an average annual growth rate of 5.5%.
According to the 2012 NAIC premium data, Colonial Life & Accident’s main products include Accident, Short Term Disability, and Specified Disease with 92% of the supplemental health premium coming from these products in 2012.
Washington National (a segment of CNO Financial Group) is one of the leading companies in offering Cancer and Critical Illness products. Washington National reported supplemental health earned premiums of just over $117 million for first quarter 2013. This is an increase of 6% when compared to first quarter 2012 which continues a steady trend of 6% annual growth since the beginning of 2009.
Torchmark reported premiums for their supplemental health plans of just over $110 million, a 60% increase over first quarter 2012. Most of the increase can be attributed to the acquisition of Family Heritage Life Insurance Company which puts Torchmark in the top 5 for Cancer and Critical Illness producers.
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About CSG Actuarial
CSG Actuarial is a leading provider of actuarial and competitive information for supplemental products. CSG has more than 50 years of actuarial experience with pricing, product development and competitive intelligence within the Medicare Supplement, Critical Illness, Cancer, Final Expense, and Hospital Indemnity markets. Call 855-861-8776 or email firstname.lastname@example.org to learn more.