Defining the future

Johanna Gornitzki: To kick off today’s debate, let’s look at the current issues facing the critical illness (CI) market. Why are sales falling? Kevin Carr: There are a couple of factors to start with, and the first one is the rise in price of the cover we have seen over the last three or four years. In particular, the price rises we saw around 2002 when we saw increases of 50% or 60% overnight from a number of companies. We monitor the competitive end of the pricing market and, in 2002 and early 2003, the price of guaranteed CI cover roughly doubled. So, I think there is a simple supply a...