Discover A New Approach To Disability Products
Conventional disability products in Germany don’t always represent the best cover for more risk-laden occupational groups, largely because they have developed to a high-performance category and have relatively high premiums due to differentiation. But new “functional disability” and “body protection” approaches are increasingly recognized as a viable alternative for many of these risks.
Functional disability and body protection products in Germany can actually be marketed quite separately from conventional disability insurance. That’s because these products have entirely different benefit triggers.
Both, functional disability and body protection products, cover specific illnesses or losses of capabilities; though they differ in the concrete design of the product and in the severity of the definitions for the benefit triggers. However, importantly they do not cover a potentially abstract disability insurance concept such as “own” or “any occupation.” Consequently, both the broker and the client can be sure that they are selling or buying a product that is completely different from conventional disability insurance. In addition, the products are also more easily accessible, in particular also for accident insurance brokers, as functional disability products are offered by accident insurers.
The benefit triggers for both segmented disability products can be designed in different ways and no one way is the best. More important, perhaps, is choosing benefit triggers that are most appropriate for an insurance company’s resources and suit the needs of a particular client market best. Gen Re has also developed alternative approaches to functional disability and body protection products in the category of segmented disability products.
As an expert in disability insurance and a leading specialist worldwide in cover for critical illness, Gen Re has a lot of experience in segmented disability products and can provide a range of services that help insurers with product development, underwriting, point-of-sale-system and claims evaluation.
And as my paper (published in Topics No. 21) explains, there are many good reasons for clients to choose segmented disability insurance, that translates into a potential new market opportunity for many insurers’ life or accident departments.
Read on for more on new product development in the German disability market.