PORTLAND, Maine--(BUSINESS WIRE)--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 2018. Eighty-four companies are represented in this year’s report, including those with blocks of business that are currently open or closed, with most companies managing a combination of both.
Key results from this year’s survey include:
- Across all participants, $24.2 billion in total Medicare Supplement in-force premium was reported for 2018, a growth rate of 6.6% over 2017 results.
- For companies actively selling and reporting premium and lives for both 2017 and 2018, sales premium and lives declined by 3.2% and 3.7%, respectively.
- Lapse rates averaged 9.8% for open blocks of business and 14.7% for closed blocks in 2018.
- Plan F continues to be the most popular plan when looking at all in-force business; however, in 2018 Plans F & G each accounted for 40% of new sales. This would seem to be a proactive move by distribution to address the January 1, 2020 MACRA changes.
- Over half 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 10% 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.
About Gen Re
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. www.genre.com