Supplemental Health Insurance 2nd Quarter 2019 Results
CSG Actuarial recently 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 their product offerings, and as employers add worksite supplemental products for employee benefits. While there are many companies finding success in these markets CSG Actuarial analyzed the second 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 $5.71 billion for 2018. Aflac reported total earned premiums of $1.46 Billion for second quarter 2019, a 2.3% increase compared to second quarter 2018. Aflac has increased their quarterly earned premiums by $365 million since second quarter 2009, an average annual growth rate of 3% over the last 10 years.
70% of Aflac’s second quarter new business premium consisted of supplemental health products, including Accident, Critical Care, Dental/Vision and Hospital Indemnity.
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 $332 million in Second quarter 2019 a 6% increase compared to second quarter 2018. Colonial Life & Accident has increased their quarterly supplemental health premium by just under $110 million since second quarter 2010, an average annual growth rate of 4.5%.
According to the 2018 NAIC premium data, roughly 65% of Colonial Life & Accident’s non Life Insurance earned premium in 2018 was from supplemental health products, including Accident, Critical Illness, Hospital Indemnity, and Dental products. The other 35% comes primarily from Short-Term Disability products.
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 $156 million for second quarter 2019. This is an increase of 3% when compared to second quarter 2018 which continues a steady trend of 5% annual growth since second quarter 2010.
According to the 2018 NAIC premium data, nearly all of Washington National’s earned premium in 2018 was from supplemental health products, including Accident, Critical Illness, and Hospital Indemnity.
Torchmark reported second quarter premiums for their supplemental health products, which was calculated by combing premiums for Family Heritage, Liberty National, and American Income, of just under $145 million, a 3% increase over second quarter 2018. Torchmark’s earned premium has been relatively flat since the acquisition of Family Heritage Life Insurance Company in late 2012.
CSG helps companies analyze market opportunities, develop new products, and provides competitive intelligence products for the supplemental health insurance markets. From benchmarking current products, to full service product development and pricing, CSG can help. For more information on our Competitive Intelligence Guides and Consulting Services visit our website (Guides, Services), send us an email, or give us a call.