The Gen Re Medicare Supplement Insurance Market Survey surveyed insurer’s 2025 results, with 46 questionnaires completed, representing 96 companies with Med Supp business. The participating companies received the comprehensive survey report. Here’s a look at an overview of the Business Performance results.

The previous article about the survey focused on highlights from the Premium & Lives results.

Distribution of 2025 Profit Margins

Four companies with open blocks and 22 with closed blocks achieved positive profit growth. In contrast, two companies in each segment reported profit losses of more than 20%.

Overall, profit margins for open blocks averaged ‑6.8% and ranged from ‑33% to 5%. In comparison, profit margins for closed blocks averaged 1.7%, with a wider range spanning from ‑31% to 25%.

Distribution of 2025 Loss Ratios

Loss ratios for closed blocks exhibit a stronger concentration in the 71%‒90% range, while open blocks are more evenly distributed, with the largest concentration in the 81%‒90% range.

Overall, loss ratios averaged 87.0% for companies with open blocks and ranged from 63% to 115%. For closed blocks, loss ratios averaged 83.5% and ranged from 50% to 107%.

Distribution of 2025 Lapse Rates, Including Mortality

The majority of companies with open blocks (14) reported lapse rates of 10% or lower in 2025. In contrast, closed blocks of both 1992 and 2010 plans show a shift toward higher lapse rates, with most companies falling within the 11%–20% range. Across all plan types, very few companies reported lapse rates above 20%.

Lapse rates, including mortality, were consistently higher for closed blocks than for open blocks in both years analyzed. Open blocks reported the lowest lapse rates, increasing slightly from 10.2% in 2024 to 10.8% in 2025. Among closed blocks, 2010 plans exhibited the highest lapse rates, although they declined from 15.5% in 2024 to 14.4% in 2025.

Observed and Expected Claims Trends

Claims trends for open blocks, are expected to remain stable in 2026 at 9.8%, matching the 2025 observed trend. In contrast, closed blocks of 1992 plans are projected to experience the largest reduction, falling from 10.2% in 2025 to 8.0% in 2026, a decrease of 2.2 percentage points. Similarly, closed blocks of 2010 plans are expected to fall from 11.4% to 9.4%. Despite this improvement, 2010 plans are still expected to have the highest claim trend in 2026, while 1992 plans are projected to have the lowest.

Distribution of 2025 Rate Increases Filed and Approved, Open Blocks

For open blocks of 2010 plans, the distribution of filed rate increases was concentrated in the 11%–15% and 16%–20% ranges, representing 7 and 5 companies, respectively. Approved rate increases showed a similar but slightly shifted distribution, with the largest concentration of approvals in the 11%–15% range (8 companies) and 16%–20% range (7 companies). Notably, fewer companies received approvals above 20%, with only one company approved in the 21%–25% range and one company approved for an increase greater than 25%.

In 2025, companies with open blocks requested rate increases averaging 15%, with filings ranging from 5% to 31%. Approved rate increases averaged 14%, with approved adjustments ranging from 5% to 26%.

2025 Rate Increases Filed and Approved, Closed Blocks

Closed blocks of 2010 plans experienced substantially larger rate increase requests than closed blocks of 1992 plans. Requested rate increases averaged nearly 16% for 2010 plans, compared with 8% for 1992 plans. Approved rate increases followed a similar pattern, averaging 14% for 2010 plans and 7% for 1992 plans.

On average, companies with open blocks received approval for 94% of the requested rate increases. Among companies with closed blocks, 90% of requested rate increases were approved for 1992 plans and 92% were approved for 2010 plans.

For their Open Blocks, a large number of companies are reporting negative profits, Loss Ratios of 80% or higher, and double-digit or greater Rate Increase approvals. This is significantly changing the competitive environment of the Med Supp market as companies are repositioning away from the least expensive rates, while still trying to maintain profitable sales.

Reach out if you’d like more info, including if you want to see the survey’s participating companies.

Stay tuned for upcoming articles with highlights from our survey’s other sections including Claims and Distribution results. Underwriting results will be out next!