The Evolution of Critical Illness Insurance- Part 2

<h1>The Evolution of Critical Illness Insurance- Part 2</h1>Author: <a title="Mike Armstrong" href="http://www.articlesbase.com/authors/mike-armstrong/14098.htm">Mike Armstrong</a> According to Dinani A and others (March 2000) “A Critical Review”, in the year 1998, almost two thirds of critical illness sales were mortgage related. It can also be said that around 50 percent of in force critical illness policies were riders to mortgage insurance. There was a big difference in critical illness sales amount according to how companies sold the product. This varied between successfully marketing the product and simply adding it to complete a wide range of products.

As per Munich Re 2001, the market share for the top 10 providers in critical illness sales volume had fallen as the market expanded. This had not stopped these top 10 providers to possess 60 percent of the overall market as they had changed marketing strategies and product design during the 1990’s.

Moreover, the initial success for critical illness cover came with Direct Sales Forces (DSF) in the late 1980’s. Although new competitors stepped inside the insurance market DSF still held around 85 percent of market share in the year 1991. The remaining 15 percent was held by the Independent Financial Advisors (IFA) market. According to Dinani A and others (March 2000) “A Critical Review”, there was competition between DSF and IFA. Since the year 1991 to 1998, DSF had been the better offices to win. In the year 1993 DSF held about 90 percent of market shares while IFA held roughly 10 percent. But IFA did not stop and continued to strive which resulted in a considerable increase in shareholding by the year 1998. For both IFA and DSF, critical illness sales have been the main target than any other product.

Furthermore, during the year 1991 bancassurers, another office, held a minimum percentage share in the critical illness insurance market. This share increased to 35 percent in the year 1998. Thus, the critical illness market was then split among three groups, DFA, IFA and Bancassurer. Over the year 1998, it was the Bancassurance sector that grew rapidly in the critical illness market. According to Robojohns N 2000, in 1997 bancassurers had about 176 individual critical illness policies sold as compared to 238

in 1998. This therefore represented a 35 percent growth. On the other hand DFA experienced a downfall for individual critical illness policies sold. The result was 259 in 1997 and 218 in 1998 which showed a -16 percent collapse. As for IFA there was a 16 percent raise in the number of critical illness policies sold which was best described as 188 policies sold in 1997 as compared to 218 policies sold in 1998.

As per Robojohns N 2000, Bancassurers applied much effort on term insurance with critical illness. As for DFA and IFA it was endowment with critical illness insurance that brought success. Bancassurers accounted for around 60 percent of the total accelerated term insurance critical illness market. But DFA remained most dominant concerning whole life critical illness policies with about 60 percent of that whole market share. In the year 1998 when Bancassurers held 35 percent of the critical illness market, DSF held 32 percent and IFA held also 32 percent. It meant that at that time, the game had started to become a close one.

About the Author: For more information about <a href="http://www.unbeatablelifeandcriticalinsurance.co.uk">life insurance</a> and <a href="http://www.unbeatablelifeandcriticalinsurance.co.uk">critical illness insurance</a> please visit <a href="http://www.unbeatablelifeandcriticalinsurance.co.uk." target="_blank">www.unbeatablelifeandcriticalinsurance.co.uk.</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/insurance-articles/the-evolution-of-critical-illness-insurance-part-2-182284.html" title="The Evolution of Critical Illness Insurance- Part 2">The Evolution of Critical Illness Insurance- Part 2</a>

According to Dinani A and others (March 2000) “A Critical Review”, in the year 1998, almost two thirds of critical illness sales were mortgage related. It can also be said that around 50 percent of in force critical illness policies were riders to mortgage insurance. There was a big difference in critical illness sales amount according to how companies sold the product. This varied between successfully marketing the product and simply adding it to complete a wide range of products.

As per Munich Re 2001, the market share for the top 10 providers in critical illness sales volume had fallen as the market expanded. This had not stopped these top 10 providers to possess 60 percent of the overall market as they had changed marketing strategies and product design during the 1990’s.

Moreover, the initial success for critical illness cover came with Direct Sales Forces (DSF) in the late 1980’s. Although new competitors stepped inside the insurance market DSF still held around 85 percent of market share in the year 1991. The remaining 15 percent was held by the Independent Financial Advisors (IFA) market. According to Dinani A and others (March 2000) “A Critical Review”, there was competition between DSF and IFA. Since the year 1991 to 1998, DSF had been the better offices to win. In the year 1993 DSF held about 90 percent of market shares while IFA held roughly 10 percent. But IFA did not stop and continued to strive which resulted in a considerable increase in shareholding by the year 1998. For both IFA and DSF, critical illness sales have been the main target than any other product.

Furthermore, during the year 1991 bancassurers, another office, held a minimum percentage share in the critical illness insurance market. This share increased to 35 percent in the year 1998. Thus, the critical illness market was then split among three groups, DFA, IFA and Bancassurer. Over the year 1998, it was the Bancassurance sector that grew rapidly in the critical illness market. According to Robojohns N 2000, in 1997 bancassurers had about 176 individual critical illness policies sold as compared to 238
in 1998. This therefore represented a 35 percent growth. On the other hand DFA experienced a downfall for individual critical illness policies sold. The result was 259 in 1997 and 218 in 1998 which showed a -16 percent collapse. As for IFA there was a 16 percent raise in the number of critical illness policies sold which was best described as 188 policies sold in 1997 as compared to 218 policies sold in 1998.

As per Robojohns N 2000, Bancassurers applied much effort on term insurance with critical illness. As for DFA and IFA it was endowment with critical illness insurance that brought success. Bancassurers accounted for around 60 percent of the total accelerated term insurance critical illness market. But DFA remained most dominant concerning whole life critical illness policies with about 60 percent of that whole market share. In the year 1998 when Bancassurers held 35 percent of the critical illness market, DSF held 32 percent and IFA held also 32 percent. It meant that at that time, the game had started to become a close one.

For more information about life insurance and critical illness insurance please visit www.unbeatablelifeandcriticalinsurance.co.uk.

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/insurance-articles/the-evolution-of-critical-illness-insurance-part-2-182284.html

Article Tags: Life Insurance, Critical Illness Cover

Related Articles
Related Q&A

Latest Insurance Articles
More from Mike Armstrong

Five ways to slash car insurance costs

By: Christina Pomoni | 03/01/2010
The increasingly competitive environment of the insurance industry that has been triggered by the Internet enables consumers to review their insurance policies, look for lower insurance rates, and compare premiums.

Insurance quotes - visit US insurance online to get the best ones

By: Mustard Kuliberyn | 02/01/2010
If you want to shop for insurance then you can rely on US insurance company. We make your insurance shopping a pleasant experience.

The Best Home Insurance at a Discounted Price

By: Frank Topol | 02/01/2010
Few things are as important as making sure a home is adequately protected in the event of any type of catastrophe or tragedy, but there is nothing wrong with getting a great deal by finding the best home insurance quotes available. Consumers need to be aware of the various discounts that are available to them and they also need to learn the best way to obtain no obligation home insurance quotes.

Ways to Get Cheap Car Insurance for Young Drivers

By: Frank Topol | 02/01/2010
Cheap car insurance is often considered to be impossible to obtain for young drivers, but it actually may be much easier than most people think. It is important to note that cheap car insurance is definitely not synonymous with poor coverage and few age groups need adequate protection as much as young drivers do. There are several things that cheap car insurance seekers need to be aware of when it comes to young drivers.

Travelling? Take Out Short-Term Insurance to Cover Possible Health Expenses

By: Jared D. Ingram | 02/01/2010
If you are travelling abroad, you should take out travel health or medical insurance to help you cover your medical expenses in case of an emergency abroad. Note that medical costs and hospital care abroad can be steep and US-issued policies are generally not accepted outside the US. Medicaid and Medicare programs also do not provide coverage for medical or hospital expenses incurred outside the US.

Supplementing Your Temporary Medical Insurance with Cash-Only Medical Visits

By: Jared D. Ingram | 02/01/2010
If you are between jobs and have lost health coverage, then a temporary medical insurance policy can help bridge the coverage gap until you get a new job that will provide you with insurance. These policies typically have low monthly premiums, but high deductibles.

Things to Consider When Buying Temporary Health Insurance

By: Jared D. Ingram | 02/01/2010
If you are between jobs and thinking about skipping health insurance just to save money, think again. With the high cost of medical care these days, one accident or catastrophic medical event can drive you deep into debt if you don’t have coverage. Thus, you should consider what you’ll be spending on health insurance premiums as a way to buy yourself peace of mind and provide yourself with a safety net – even if you never actually use the policy.

Alternatives for Short-Term Medical Insurance if You Are Without Coverage

By: Jared D. Ingram | 02/01/2010
If you are without health coverage for whatever reason – because you are unemployed for example, or newly-graduated and looking for work – short-term medical insurance is the ideal solution for you to have some form of coverage until you can get full-time coverage.

Public Attitudes Towards Life Insurance - Part 2

By: Mike Armstrong | 15/01/2009 | Insurance
The question has two interesting elements. First, it asked who should be able to see the information. Although it did not ask whether insurance companies, for example, should be able to use results of the genetic tests in deciding coverage or rates, a likely interpretation by many respondents was that having access to the information could lead to some (possibly adverse) action.

Public Attitudes Towards Life Insurance - Part 1

By: Mike Armstrong | 15/01/2009 | Insurance
When the Human Genome Project officially began in 1990, the first social concern to generate widespread interest was the possibility that health insurance companies would use predictive genetic information to charge individuals higher rates or to exclude them from coverage.

Critical Illness Cover-see to it That Your Claims are not Turned Down

By: Mike Armstrong | 09/09/2008 | Insurance
To obtain full benefit from critical illness cover, reading your policy documents attentively can be vital. Critical illness claims may be becoming less frequent these days. But still, people find their claims being turned down. Non disclosure is one common factor that leads to a critical illness cover being turned down.

Discounted Critical Illness Policy- a Plus or Not?

By: Mike Armstrong | 09/09/2008 | Insurance
Discounted critical illness insurance as its name mentions, can be obtained at an affordable price. Discounted critical illness insurance may sometimes be confused with private medical insurance. Private medical insurance may pay for the treatment procedures in the event of a critical illness.

Discover the Various Aspects of Having a Critical Illness Policy

By: Mike Armstrong | 09/09/2008 | Insurance
Having a critical illness policy is not just a measure of precaution for the future. It can also be considered as a means to save you money. The idea of having a critical illness policy is fine.

How to Obtain a Successful Payout With Critical Illness Cover?

By: Mike Armstrong | 09/09/2008 | Insurance
Critical illness cover is considered as a rather complex form of insurance. Critical illness cover has many underlying stipulations. Obtaining a successful claim under critical illness cover may not be as easy and direct as life or car insurance. With life insurance, the insurer simply has to confirm your death.

Mortgage Critical Illness Insurance- a Good Investment or Not?

By: Mike Armstrong | 09/09/2008 | Insurance
First of all if you are worried about the safety of the family or want to set everything right for the future, you are probably wondering about taking a mortgage critical illness insurance. Fine idea as it is, to get the best mortgage critical illness insurance you must have to somehow get busy.

Securing yourself Financially for the Future With Critical Insurance

By: Mike Armstrong | 09/09/2008 | Insurance
Critical insurance has become one of the most rapidly growing forms of insurance available today. According to tiscali.money, over 1 million of critical insurance policies may have been sold in the UK in the year 2002.