Several months ago CSG Actuarial compiled historical quarterly premium results of some of the leading supplemental accident and health carriers in the country. The supplemental accident and 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.
Second quarter 2013 results for Aflac, Colonial Life and Accident, Washington National and Torchmark continued the solid premium growth in the supplemental accident and health market. These four companies have increased their quarterly earned premiums more than $100 million (combined) when compared to second quarter 2012.
Aflac (US Operations)
Aflac is the leader in the supplemental accident and health market with total earned premium of just over $4.99 billion for 2012. Aflac reported total earned premiums of $1.295 Billion for second quarter 2013 a 3.5% increase compared to second quarter 2012.
88% of Aflac’s second 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 $252 million in second quarter 2013 a 3% increase compared to second quarter 2012.
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 $119 million for second quarter 2013. This is an increase of 5% when compared to second 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, down slightly compared to first quarter 2013 but still a 65% increase over second 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.
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.