The basic benefits are determined by the entity purchasing the group product for all members, thus reducing the risk exposure and adverse selection. Typically, contracts provide default cover to eligible members without medical checks and are set for an agreed period (typically one to three years).
Upon expiry of the term, the contract is renewed and a revised premium or benefit design negotiated. For large group schemes with credible experience the price of the cover is driven by the scheme’s historic experience and benefit design which makes each contract somewhat unique.
Group life products may include lump sum benefits, payable in the event of death or total and permanent disability, as well as temporary disability benefits in the event of an extended inability to work due to illness or injury.
Hannover Re actively provides reinsurance support to life companies offering this type of business in many markets around the globe, e.g. in Australia, South America, Western Europe and in the Middle East. In Australia, Hannover Re is in a unique position writing group life business both on a primary and on a reinsurance basis.
Group health covers usually provide reimbursement of medical expenses up to a predefined limit as chosen by the employer. Volatility of both top and bottom line can be particularly challenging in this segment due to the short-term nature of the contracts. We have a strong track record of managing our clients’ profitability in various markets, particularly in the Middle East and in the United States.
Based on our expertise around the globe we can transfer concepts, benefit designs and pricing approaches from one market to another. Combining international intelligence and local expertise, our clients benefit from our extensive knowledge and expertise in pricing, product design, claims management, as well as training, on-line systems and medical underwriting tools.
In Hannover Re, you have an experienced, knowledgeable and nimble partner who operates on a long-term partnership basis.