PORTLAND, Maine--(BUSINESS WIRE)--Gen Re is pleased to release the results of the 2014/2015 U.S. Medicare Supplement Market Survey. This leading industry benchmark survey covers, but is not limited to, premiums, profitability and loss, claims trend, lapse rates, refunds and discounting, application processing, underwriting and distribution.
Eighty companies in the Medicare Supplement (Med Supp) business are represented in this year’s survey. Highlights from the Summary report, now available on Gen Re’s website, include the following:
- Together participants reported a total of $17.6 billion of in-force premium for 2014, representing a growth of 8.2% over 2013, further increasing to 9.5% when focusing only on those companies that were actively selling Medicare Supplement insurance in 2014.
- Sales premium for actively selling companies increased by 17.1% over 2013, reaching over $2 billion in 2014.
- Plan F remains the most sold plan, accounting for 58% of the total premium sold in 2014. Over 70% of the participating companies reported selling Plans C and/or N, with these two plans represented 12% of sold premium in 2014.
- 80% of the participants reported they had sales through independent agents, accounting for 65% of the premium sold in 2014.
- 1992 Standardized plans averaged a claims trend of 3.0% in 2014, while 2010 Standardized plans averaged a higher claims trend at 4.6%.
“The market for Medicare Supplement is growing rapidly as individuals are becoming eligible for retirement at a rate of 10,000 per day,” said Drew King, SVP, Group & Specialty Division at Gen Re. “It is essential that insurance providers are prepared and willing to meet the needs of the expanding senior market.”
For more information about the Medicare Supplement market, visit www.genre.com/medsupp.
Gen Re, a Berkshire Hathaway Company, is one of the leading life/health and property/casualty reinsurers in the world. Our North American life and health reinsurance company, General Re Life Corporation, has superior financial strength ratings among life and health reinsurers. Gen Re delivers tailor-made reinsurance programs and risk management solutions for the Life, Medicare Supplement, Critical Illness and Disability markets. Through our research, we also offer valuable information and insights. For more information, visit www.genre.com.