Tag Archives: critical illness

What will China’s new health insurance industry look like?

With implementation measures for the National Health and Wellness Conference and the Healthy China 2030 initiative under discussion, 21 ministries and commissions jointly released the “Action Plan for Promoting the High Quality Development of the Healthcare Industry 2019-2022.” The plan promotes, in the development of health insurance products, the use of special needs medical services, innovative medical technologies and drugs and high-end medical devices, as well as health intervention procedures such as disease risk assessments, disease prevention and physical fitness activities. All of these new health service elements should be closely integrated into the healthcare industry.

In this paper, Milliman’s Jiang Guanjun and Qinqin Huang, former editor of Insurance Society of China, discuss the future of health insurance under this new action plan. Specifically, they provide:

  1. An analysis of current issues in health insurance development
  2. Information on developing new health insurance
  3. Information on opportunities and resource support under the new health insurance

Critical illness riders are accelerating

In a growing trend, insurance companies have begun appending critical illness (CI) riders as part of traditional life insurance policies. Insureds can accelerate receipt of a share of their policy if they are diagnosed with a critical illness such as heart attack, stroke, or cancer.

In this Best’s Review article (subscription required), Milliman’s Darrell Spell discusses how CI riders function. Here is an excerpt from the article:

Proceeds from the rider are paid directly to an insured, with no restrictions on how the funds are spent, noted Darrell Spell, principal and consulting actuary for Milliman.

“The remainder becomes payable upon death, so if you accelerate 50% of your $100,000 face-amount term life policy, your beneficiaries would receive the remaining $50,000 upon the insured’s death,” Spell said.

Similar to stand-alone CI products, insureds can use the riders’ benefits for virtually anything–mortgage, credit card bills, travel expenses, experimental drugs, child care. “The choice is theirs,” Spell said.

New analysis of critical illness risk

A new study looks at critical illness rates and provides further insight into the risks of smoking. As reported in National Underwriter:

A 25-year-old male non-smoker has a 24% chance of having a critical illness before reaching age 65 — and a 25-year-old male smoker has a 49% chance of incurring such an illness, according to the American Association for Critical Illness Insurance.

Analysts at Milliman Inc., Seattle, included those figures in a national critical illness risk assessment study prepared for the AALTCI, Westlake Village, Calif.

The Milliman analysts used a definition of critical illness that includes heart attacks, strokes, and life-threatening occurrences of cancer.

See the full NU article here and read other coverage here.