Unlike policies such as income protection or private medical insurance, which are designed to protect policyholders against lost income or medical costs incurred, critical illness does not indemnify the policyholder. Instead it provides a lump sum (or sometimes regular payments) should they suffer a defined medical condition, reach a defined degree of impairment, or undergo a particular surgical procedure.
Its complex hybrid nature suits critical illness to a wide variety of product design approaches. Our clients benefit from our longstanding and wide-ranging experience with different types of critical illness products around the world, positioning Hannover Re uniquely well to provide expert guidance and to bring fresh ideas and insights to the table.
We have an established track record as innovators in the critical illness market. For example, we partnered with a leading UK life insurer to design the first severity-based critical illness product in that market, and remain active members of their team to this day.