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Posted on April 16, 2008 by Mike Armstrong | Posted under Insurance
Some Factors Affecting Critical Illness Cover In Australia
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The premium rates for critical illness cover may have been rising considerably. An increase of around 14 percent may have been noted on basis of a total premium income during the year 1997. During the same year the new business premium may have already been around 15 percent. These may have been due to prepayment riders on term insurance. Standalone critical illness covers may have also been introduced. But fewer sales may have been recorded similar to markets like the UK, South Africa and Canada. Thus, the product may have been unsuccessful in Australia. However, there may some factors in the Australian market that affect critical illness cover. Let's have a look. Selection It has been found that the critical illness claims ratio may be better for men in the first policy year than preceding years. But the risk covered in the critical illness policy in the first policy year may be smaller due to the existence of a waiting period of around three months. Considering the second policy year, no effect of selection may be seen. As for women, the critical illness claims ratio in the first and second policy years may be higher than the subsequent years. However, analysis may demonstrate that for breast cancer (women) and heart attacks (men) critical illness claims may be made much earlier. These claims may be put under final review after the waiting period is over, i.e. after four to five months. Causes of claims Similar to other insurance markets, a critical illness like cancer may also dominate the Australian market. Around 61 percent of the total critical illness claims made may have been for cancer. From this, about 46 percent of man may have claimed while nearly 84 percent of women may have also done the same. Critical illness conditions like heart attack and bypass surgery may have brought more significant results with men. Around 17 percent of men may have claimed for heart attack whilst 10 percent may have claimed for bypass surgery. Apart from heart attack, cancer, bypass surgery and stroke other critical illness claims may have also been made. 16 percent of these claims may have been made in which 20 percent of men may have claimed and 10 percent of women. As seen, there had been probably these 2 factors that may have affected critical illness cover in Australia. The more critical illness policies people have, the more factors affecting critical illness cover tend to crop. Therefore, this may imply that the Australian market may have not yet reached its maturity. The coming years may be fruitful in terms of critical illness policy sales in Australia. About The Author: For more information about Life Insurance Cover and Critical Illness Insurance please visit www.unbeatablelifeandcriticalinsurance.co.uk. |
Tags: LIFE INSURANCE COVER, CRITICAL ILLNESS INSURANCE, MORTGAGE PAYMENT PROTECTION, INCOME PROTECTION INSURANCE
