Accident Insurance – a Great Complement to Critical Illness Insurance

September 02, 2021| By Kayla Rooney | Critical Illness | English

Region: North America

With open enrollment around the corner, a popular form of supplemental insurance selected will be Accident insurance. Accident insurance, an indemnity-based product often sold at the worksite, pays scheduled benefits for accident or injury-based ailments. Purchasers understand they will often be exposed to out-of-pocket expenses or deductibles that their underlying medical insurance won’t cover. Accident insurance coverage includes fractures and dislocations, hospitalization and ambulatory services, urgent care visits, and more.

These expenses could be a significant financial burden when more serious accidents occur, such as a motor vehicle crash, severe falls, or other injuries. Accident coverage typically has options for either 24‑hour or off-the-job coverage.

The premium cost is affordable, with average annual premiums generally ranging from $150 to $300.

Current Environment

COVID‑19 comes with sales and distribution challenges to all lines of business, but there are a few advantages for the Accident product:

  • Traditional Accident insurance does not cover sickness, so it shouldn’t be directly impacted by illness from the pandemic.
  • COVID‑19 has increased consumer awareness of supplemental health products.
  • Our new “virtual environment” and stay-at-home orders have escalated online enrollment capabilities and technology upgrades.
  • Accident insurance requires minimal underwriting (no medical underwriting questions at all), making it ideal for a virtual enrollment world.

Critical Illness insurance (CI) is the “illness” equivalent to Accident coverage (covering scheduled benefits from cancer, heart attack, or stroke) and is an ideal complementary product for it. By combining Accident and Critical Illness insurance, insureds can be protected from some of the most costly health-related out-of-pocket expenses imaginable.

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Benefits of the Accident and Critical Illness Sales Combination

One barrier to successful Accident and CI sales has been educating consumers to understand their out-of-pocket risks when a major medical crisis occurs. However, when marketing to those who have already purchased either Accident or Critical Illness coverage, the understanding is already there.

  • Customer Awareness Resonates Across the Supplemental Health Space – Individuals who have purchased either Accident insurance or Critical Illness insurance have already demonstrated an understanding of their risk exposure. Therefore, they are ideal candidates to understand the value and benefits of the other supplemental health products for more comprehensive protection.

  • Enhanced Employer Experience – Employers are more likely to work with the same carrier across benefits for a more favorable experience, from the ease of administration to consistent customer service. Per the preliminary results of the Gen Re 2021 Critical Illness Insurance Market Survey: 89% of CI carriers market CI together with Accident, and 76% market with their hospital indemnity product.1

  • Human Resources Boost – Employers may help their employees feel more secure in our current world by offering them an additional supplemental benefit product.

  • Sales Boost – Bundling – About half of the new business premiums reported in the CI worksite space are from “takeovers.” One of the most commonly cited reasons for takeovers is the ability to bundle coverage and maintain an existing relationship across products.2

The Accident market is competitive, but a bit of innovation can go a long way. Gen Re is here to help, including sharing insights from our soon-to-be-released Critical Illness Insurance Market Survey where we have a section on Accident trends, available to participating companies and clients. Reach out with questions or for Accident solutions!

  1. Gen Re, 2021 Critical Illness Insurance Market Survey Summary (preliminary results)
  2. Ibid.


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