Critical Illness Insurance International Overview
What can we learn from highly developed CI markets?
Authors Stefan König Christian Cypris R&D Centre Disability and Critical Illness Damien Bartlett United Kingdom Karsten de Braaf Singapore Francis Lussier Canada
Critical Illness (CI) insurance pays a lump sum benefit if an insured suffers a serious covered condition. Since the development of CI insurance products in South Africa in 1983, this once relatively simple product has spread around the world and has matured into a wide spectrum of variations… CI solutions differ from one market to another according to customers’ needs and to the insurance gaps between the private and statutory disability and health insurance environments.
Development of international CI markets
The base approach: Simple and easy-going!
While simple compared to today’s standards, the first South African Critical Illness product, had only 4 conditions - Cancer, Stroke, Heart Attack and Coronary Artery Bypass Graft but was considered very innovative at the time. The product concept spread rapidly throughout the world and other illnesses were added to the initial list.
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Today, the worldwide annual premium volume from CI is estimated at over 20 billion Euros (about 1% of Life premium), including pure cancer products that are still very popular in Japan. More than half the global CI premium originates in Asia, especially in South Korea, China, Malaysia and Singapore, where such products have experienced a parallel success story to that of the UK.
SCOR Global Life SE Societas Europaea with a capital of €274,540,000 1, avenue du Général de Gaulle 92074 Paris La Défense Cedex France RCS Nanterre 433 935 558
Estimated Critical Illness and Cancer premium 2009
< 1.0 billion Euro
1.0 - 3.0 billion Euro
3.0 billion Euro