Disability risk is inherently more complex than mortality risk. Influenced by a wide range of variables, including changes to social security provision, unemployment rates, and broader trends in the local market and economy, margins on products with a disability exposure are notoriously volatile. Such products also carry a higher risk of anti-selection than traditional life insurance. Historically, this combination of factors has sometimes resulted in substantial losses to insurers.
Working with Hannover Re, however, our clients benefit from both our global view of disability market trends and our detailed knowledge of local markets around the world – protecting them from uncertainties associated with disability risk.
In markets where corporate pension schemes include a disability rider and/or waiver of premium protection, for example, reinsuring with Hannover Re enables niche insurers such as bancassurers and unit linked companies, who may be primarily focused on the investment aspect of policies, to offer a full corporate pension package whilst retaining full control of disability risk.
We also add value through our expert support with all aspects of disability risk, including:
- Claims handling
- Terms and conditions
- Premium calculation
- Risk selection
- Automated underwriting system
Clients partnering with Hannover Re are able to offer a full range of disability risk exposed products whilst protecting themselves from unwelcome uncertainty.