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Critical Illness Insurances: Challenges and Opportunities for Insurers

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  • Nadine Gatzert
  • Alexander Maegebier

Abstract

Since the first introduction of critical illness insurance in 1983 in South Africa, the product has successfully spread to some insurance markets, especially in Asian and Anglophone countries, but market penetration remains low in other countries. For this reason and because of the increasing relevance of dread diseases, the aim of this article is to provide a first comprehensive overview of challenges and opportunities associated with critical illness products for insurers. Toward this end, we first present the various product designs, as well as the developments that have taken place within the market before comparing this form of coverage to alternative insurance products in order to better assess the market potential. Based on these assessments, we thoroughly discuss the major challenges and opportunities within the market from the insurer's perspective.

Suggested Citation

  • Nadine Gatzert & Alexander Maegebier, 2015. "Critical Illness Insurances: Challenges and Opportunities for Insurers," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 18(2), pages 255-272, September.
    • Handle: RePEc:bla:rmgtin:v:18:y:2015:i:2:p:255-272
    DOI: 10.1111/rmir.12033
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    References listed on IDEAS

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    1. Christopher Longo & Michel Grignon, 2009. "The Value of Fixed-Reimbursement Healthcare Insurance- Evidence from Cancer Patients in Ontario, Canada," Centre for Health Economics and Policy Analysis Working Paper Series 2009-03, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
    2. Marcus Christiansen, 2012. "Multistate models in health insurance," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 96(2), pages 155-186, June.
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    Cited by:

    1. Nie, Pu-yan & Wang, Chan & Chen, Zi-yue & Chen, You-hua, 2018. "A theoretic analysis of key person insurance," Economic Modelling, Elsevier, vol. 71(C), pages 272-278.

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