When are reviewable premiums for critical illness cover typically assessed?

Reviewable premiums for critical illness cover are typically assessed every five or ten years based on the claims experience of the insurer. This approach allows insurers to evaluate the actual claims that have occurred during that period in relation to the premiums collected. By reviewing the claims experience, insurers can adjust premiums to reflect the true risk and cost of providing coverage, ensuring that the policy remains financially viable in the long term.

This assessment period is established because it provides a balance between stability for policyholders and the need for insurers to adapt to changing risk levels. By reviewing the premiums every five or ten years, insurers can mitigate the impact of short-term fluctuations in claims, which can arise from various factors including advances in medical technology or changes in the prevalence of certain critical illnesses. This systematic review aligns the pricing of coverage with underlying risk, ensuring that all parties are treated fairly and sustainably.