The issue of leveling cession rates, capacity and the growth in the older age insurance market were among several issues discussed by Jim Senn, president of the individual life and health operations with ING Re, Denver.
Senn told National Underwriter that cession rates, currently in the 60% range will probably increase industrywide through the mid-70% range before leveling off. Cession rates reflect insurance contracts that are ceded to reinsurers.
That possibility coupled with industrywide overcapacity is encouraging the development of other markets such as critical illness insurance and products that focus on consumers aged 60-75, he added. The market is still small for consumers who are older, he says. ING Re is placing more emphasis on these two areas, adds Senn.