From Telos Actuarial: The table below shows aggregated experience for six key Hospital Indemnity carriers from 2018 through 2023. The key takeaway: rising premiums paired with consistent loss ratios. Notably, loss ratio experience exhibited a decline in 2020, likely attributable to the effects of COVID-19, and have remained at those lower levels in the years since.
Over the past several years, these six companies’ senior Hospital Indemnity plans have shown a promising shift in performance. Since 2019, earned premium has increased roughly 10% each year. Outside of the drop in 2020, loss ratios have remained fairly consistent during that same period.
As these carriers have experienced loss ratios below expected levels, states that require annual rate certification filings – such as Colorado, Florida, and North Carolina – have required rate decreases and/or benefit increases on these products. Recent regulatory filings indicate that several of these carriers have implemented rate decreases ranging from 15.0% to 50.0% in those states.