Individual Dental Market Snapshot
As shown in a recent Telos blog, the market for ancillary health products continues to grow, and individual Dental insurance is a significant part of that picture. With a growing senior population, more Medicare Advantage plans including some level of dental benefits, and seniors no longer covered by employer-sponsored dental plans, the need for individual dental coverage is clear.
Earned premium for these products have experienced significant growth in recent years, averaging over 10% per year, including a Covid-related slowdown in 2020.
With the growing senior population, a conservative projection of future earned premiums yields additional growth exceeding 2.5% per year over the next decade, with the potential for more if growth rates are more like recent results.
Source Data: NAIC Accident & Health Experience Exhibits, Regulatory Filings, Telos Actuarial Estimates
There is variation in loss ratio results by carrier and by year, but the market average has stayed very consistent near 60%, well below Medicare Supplement and Medicare Advantage loss ratios.
Source Data: NAIC Accident & Health Experience Exhibits, Regulatory Filings, Telos Actuarial Estimates
Carriers and distributors are expanding their portfolios to offer Dental products, and we project that this market will continue to grow.
Would you like to learn more? Our Dental Market Opportunity Report can help. It provides a big picture view of the market showing main competitors, profit margins, market projections, and more. The report is designed to quickly get you up to speed on the opportunity and the market.
Send us a note at info@telosactuarial.com to find out more!
