Latest Insights from Gen Re's Medicare Supplement Survey
Gen Re Unveils Findings from Medicare Supplement Survey
Gen Re, a prominent player in the reinsurance industry, has recently released insightful results from its annual U.S. Medicare Supplement Market Survey. This comprehensive survey serves as a benchmark for the Medicare Supplement sector, providing an in-depth look at new sales, existing business performance, lapse rates, claims trends, and rate filings for the current year.
Understanding the Survey's Significance
The survey's findings are crucial for industry stakeholders, including insurance companies, agents, and policyholders. With participation from eighty-nine companies, the report illustrates various aspects of the Medicare Supplement market, including financial metrics and operational strategies. Notably, half of the participating companies manage both open and closed blocks of business, reflecting the diverse landscape of the industry.
Key Financial Highlights
This year's survey revealed some compelling statistics. The total inforce premium reported across all participants reached an astounding $14.4 billion for 2023. Of this total, the premiums from open blocks accounted for approximately $8.7 billion, marking a 6.3% increase compared to the previous year. On the other hand, closed blocks reported more than $5.7 billion, reflecting a decline of 3% from 2022. These figures showcase the ongoing shifts within the Medicare Supplement landscape.
The Scope of Covered Lives
Participants in the survey reported more than 5.6 million covered lives in 2023, which is relatively consistent with the previous year’s results. This statistic highlights the stability in coverage despite external market pressures, emphasizing the importance of this sector in providing healthcare support to millions.
Analysis of Lapse Rates
Lapse rates for 2023 showed notable trends, averaging 10% for open blocks of business and 16% for closed blocks. Understanding these rates is vital for companies to develop strategies aimed at improving customer retention and managing their risk exposure more effectively.
Popular Plans and Sales Channels
Within the Medicare Supplement offerings, Plan G has emerged as the most sought-after option, representing an impressive 73% of new sales premiums and covering 72% of new lives in 2023. This statistic underscores the importance of Plan G in meeting the needs of Medicare beneficiaries.
Distribution channels for these plans reveal interesting trends as well. A significant 92% of the participating companies sell Medicare Supplement plans through independent agents, contributing to 78% of all sales premiums for the year. Conversely, 68% of participating companies also offer plans directly to consumers, which accounted for 10% of the total sales premiums. These insights are instrumental in understanding how various sales strategies influence the market dynamics.
About Gen Re and Its Role in the Industry
Gen Re operates as a leading reinsurer, under the umbrella of Berkshire Hathaway, widely recognized for its robust financial strength ratings in the Life and Health sectors. The company excels in offering tailored reinsurance programs and risk management solutions tailored to the Life, Disability, Medicare Supplement, and Critical Illness markets. Gen Re’s commitment to research allows them to provide valuable insights that benefit clients and the broader industry alike.
The full results of the Market Survey are made available exclusively to participating companies, whereas a summarized report can also be accessed, serving as a resource for those looking to glean insights from the Medicare Supplement sector.
Frequently Asked Questions
What is the purpose of Gen Re's Medicare Supplement Market Survey?
The survey benchmarks key metrics in the Medicare Supplement market, including sales performance and trends in the industry.
How many companies participated in the survey?
A total of eighty-nine companies participated in the survey, providing a comprehensive view of the market.
What was the total premium reported for Medicare Supplement in 2023?
The total inforce premium reported was $14.4 billion for the year.
Which Medicare Supplement plan was the most popular in 2023?
Plan G was the most popular, accounting for 73% of new sales premium.
How do lapse rates compare between open and closed blocks?
Lapse rates averaged 10% for open blocks and 16% for closed blocks in 2023.
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