Hospital Indemnity Growth
Hospital Indemnity coverage is very flexible and always evolving, with multiple benefit levels available, Guaranteed Issue opportunities for those gaining eligibility for Medicare, and additional coverage for observation stays, ICU confinement, ER visits, and Critical Illness diagnosis or treatment.
As previously shared, it’s also a growing line of business. Earned premium for individual hospital indemnity business topped $2 billion for the first time in 2024. Earned premium growth has averaged 14% per year since 2020, and annual inforce count growth averaged 4% per year over that same timeframe. An especially exciting development in 2024 for carriers participating in this market: not only did the volume of business increase significantly, but the average per-policy premium also increased at the same time, topping $700 for the first time.
