The creditor critical illness cover appeared in the Canadian insurance market during the year 1997. This type of critical illness cover may have then been combined to mortgage protection insurance. Canadian dollar 12 million may have been recorded during the year 2000, accounting for premium amounts due to creditor critical illness cover. This amount may have represented a 100 percent increase in premium value since the year 1997.
However, there may be certain things to remember related to critical illness insurance in Canada as compared to more successful markets like UK and South Africa. The premium payment rates in Canada offered by association, group or creditor critical illness may be non cancelable for the life of the policy. This can be an advantage for the critical illness policyholder. But from a reinsurer’s point of view, this can be an additional risk as the premium values may be normally high.
Furthermore, similar to the early times in the UK, critical illness definitions in Canada had not already been standardised. Competition over the market had made companies to lower their prices and simplify their definitions. From a marketing point of view, this could be a definite advantage. But at the moment a policyholder makes a critical illness claim this could cause a problem. It could even lead to customer dissatisfaction. The reason behind could be that the claims department would find it difficult to understand the softer definitions.
Additionally, gradually Canadian insurance companies may have started to provide cover for much more critical illness conditions. The first appearance of individual critical illness insurance saw companies cover around 10 critical illnesses. This may have helped them compete in the insurance market. Nowadays, many policies may cover for up to 20 critical illness conditions. The group market however, followed a different trend. Fewer critical illnesses, meaning less exclusion built the policy. In essence, the creditor critical illness policy covered three major conditions: cancer, heart attack and stroke. Having a simple policy meant easier marketing and presentation of the product. Hence the critical illness policy may have been easily explained to people willing to buy the policy. Fewer exclusions may have comprised the policy as compared with a policy which covered up to 20 critical illness conditions.
Moreover, insurers started to see the fact clearly that benefits paid to customers had a solid importance for them. People may regard value added services as a definite advantage apart from critical illness claims already paid out. Therefore, insurers may be working on the fact that these surplus services be offered after the lump sum had been awarded. These services may turn out to be independent specialist or physician intervention. Other services may include referral to a specialist as per the critical illness sufferer condition. On the other hand, if the claimant wishes to be treated abroad, the insurer may organize travel facilities and also payment guarantees.
Critical illness cover may have yet to prove its success in Canada. The growth of the market is set to increase during the coming years as per recent reports. The fact that most business owners and ageing people possess critical illness cover in Canada can mean that the product may be not within the reach of every people. So, if a solution could be found for this, we could see the Canadian market explode under a soaring want for critical illness cover.
For more information about
Life Insurance Cover and
Critical Illness Insurance please visit www.unbeatablelifeandcriticalinsurance.co.uk.
