Individual Life Sales Trends: Will IUL & Whole Life Continue to Drive the Growth?
Common wisdom in the industry argues that in times of financial uncertainty consumers will gravitate to the security offered by permanent coverage and an illustrated cash value. LIMRA published sales trends for the past 40 years. In looking back through the heart of the financial crisis, does the common assumption ring true?
Innovation and the Protection Gap
The life insurance protection gap remains an issue in the United States. Swiss Re research estimates the gap between the life coverage families should have for income protection, versus what they actually have, at $20 trillion in aggregate in 2010. This is up from $18 trillion in 2001 after adjusting for inflation. The average family has a gap of $378,000, up from $347,000.
MetLife Experiments With Faster Application Procedures
MetLife has introduced a program that shortens application and underwriting procedures for its Whole Life Select 10 life insurance product. This is a move designed to appeal to applicants as well as advisors looking to sell more policies.
A New Response (Best's Review)
Hybrid life insurance/long-term care product sales are rising, but the industry must pay attention to pricing and risk mitigation techniques.
The Retirement Challenge (LOMA Resource)
One of the most promising markets in the life insurance and annuity industry is the retirement market. It is top of mind in the C-suite, within government, and among both pre- and current retirees. At the heart of this business opportunity is the question of retirement security. What products and services can insurers offer to help their customers achieve it?
Life Insurance Product Development Innovation and Optimization
Life insurance new product development continues to be negatively impacted by long lead times, both to generate ideas and bring them to market, and the perceived quality of innovation within these new ideas.
In mid-2014, RGA sought to assess and quantify these issues more closely by conducting its first global survey of life insurers.
The Top 5 Priorities for Life Insurers in 2015
In coming years, expect to see more simplified and consumer-friendly products, including annuities tailored to young workers looking to build a nest egg. Life insurers’ back-office operations will also be better integrated, availing advisors of more cross-selling opportunities across product lines.