Situation critical

Critical illness insurance has undoubtedly taken off. Sales of individual policies in 1999 exceeded 750,000 up from 250,000 five years previously. Premium rates paid by customers have also fallen consistently over the same period, even though the number of illnesses covered has increased and rate guarantees have been introduced. For insurance companies, claims experience has been favourable. Perhaps most importantly, around 10,000 policyholders have benefited from payouts under their policies. However, all is not rosy in the critical illness garden. Two factors to which critical illnes...