For immediate release
July 8, 2011
Stamford, CT, July 8, 2011 … Gen Re has released the results of the 2010 Medicare Supplement Market Survey to participating companies. The annual report contains responses from 58 companies this year, an 18% increase in the number of respondents from the 2009 survey. Participating companies represent 61% of the total Medicare Supplement market, with $12 billion in annualized premium.1
For the second year in a row, the two most common challenges in achieving desired results, as reported by participating carriers, were competition and sales growth. The two most frequently mentioned corporate challenges were competition and healthcare reform. Concerns about healthcare reform increased by 6% from the level reported in 2009.
However, companies appear optimistic about their 2011 Medicare Supplement sales with 48% of the participants expecting growth, and 40% expecting sales to be at the same level as for 2010.
“We are pleased to have seen so many new participants in this benchmark survey this year,” said Drew King, Senior Vice President, Group and Specialty Reinsurance Division at Gen Re. “Carriers in the Medicare Supplement business face a number of challenges in 2011, especially the uncertainty of the healthcare reform legislation. We hope this survey provides participants with new insights into their business.”
The survey reports on a number of important areas such as sales, business performance, claim trends, lapse rates, rate filings, corporate and product challenges, competitive threats, marketing channels and commission levels, underwriting and pricing methodologies, and outsourcing, as well as partnerships with other carriers to offer additional products.
1 2010 NAIC Medicare Supplement Insurance Report
General Re Life Corporation operates under the brand name Gen Re and is the North American life and health reinsurance company of General Re Corporation. General Re Life Corporation has the highest financial strength ratings among professional life and health reinsurers. Gen Re's Group & Specialty Reinsurance Division is responsible for Disability, Group Life, Medicare Supplement and Credit reinsurance, risk management and research. Gen Re is one of the leading property/casualty and life/health reinsurers in the world, and is a Berkshire Hathaway Company.
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