Press/Media

Gen Re Announces U.S. Medicare Supplement Market Survey 2019 Results

 

Issue: October 2020 | Life/Health North America

In-force premium grew by 5.8% over 2018 for participating companies.

Portland, Maine, October 1, 2020 – Gen Re has released results of this year’s U.S. Medicare Supplement Market Survey, its annual industry benchmarking survey covering in-force, new sales, business performance, claim trends, lapse rates and rate filings for the U.S. market in 2019. Eighty-five companies are represented in the report, including those with blocks of business that are currently open or closed, with most companies (71%) managing a combination of both. Excluding Blue Cross Blue Shield companies, Gen Re estimates that the survey includes approximately 89% of the Medicare Supplement market.

Key results from this year’s survey include:

  • Across all participants, $23.3 billion in total Medicare Supplement in-force premium was reported for 2019, an increase of 5.8% over reported results for 2018.
  • For companies actively selling and reporting premium and lives for both 2017 and 2018, sales premium and lives grew by 21.0% and 12.8%, respectively.
  • Lapse rates averaged 10.6% for open blocks of business and 14.0% for closed blocks in 2019.
  • Plan G was the most popular plan sold in 2019, accounting for 54.2% of new sales premium and 55.5% of new lives.
  • Nearly 61% of the active companies who participated in the survey report selling Medicare Supplement plans on a direct-to-consumer basis (via phone, mail, online or a combination of these methods where a traditional agent receiving traditional paid compensation is not involved), and 6% are looking to develop this capability.

The Market Survey is an annual benchmark survey produced by Gen Re, with the full results available only to participating companies. A summary report is available online at genre.com/lhsurveys.

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Gen Re, a Berkshire Hathaway Company, is one of the leading Life/Health and Property/Casualty reinsurers in the world. Our North American Life/Health reinsurance company, General Re Life Corporation, has superior financial strength ratings among Life and Health reinsurers. Gen Re delivers customized reinsurance programs and risk management solutions for the Life, Medicare Supplement, Critical Illness and Individual Disability Income markets. Through our research, we also offer valuable information and insights.

 

Contact:

Steve Woods
Tel. +1 207 347 4621
steve.woods@genre.com