NEWS PROVIDED BY
Jun 02, 2021, 10:30 ET
HARTFORD, Conn., June 2, 2021 /PRNewswire/ — The pandemic disrupted the world in 2020 and into 2021, with broad impacts on the U.S. life-annuity consumer market. Consumers became aware of mortality, morbidity, and economic risks in a novel way, providing opportunities for life-annuity insurers.
The Conning Focus Series Report, “Covid-19: the Consumer Impact and Life Insurer Opportunities”, and the Conning Strategic Study, “Life-Annuity Consumer Markets, 2021”, take a look at these impacts, risks, and opportunities. In both studies, the life insurance protection gap, a measure of the under-insured level of the U.S. public, is estimated to be $23.4 trillion, a 14% increase from the 2018 measurement. This protection gap has been persistently high since the end of the Great Recession.
The Conning Focus Series Report, “Covid-19: the Consumer Impact and Life Insurer Opportunities“, details the mortality, morbidity, and employment effects in the U.S., including long-term considerations. The reaction to this higher level of risk has led to greater consumer interest in life-annuity products.
The Conning Strategic Study, “Life-Annuity Consumer Markets, 2021“, continues Conning’s regular analysis of the U.S. market for life insurance and annuities, dissected in various market segments: by generation, by income level, and by race or ethnicity. The life insurance protection gap is investigated in greater detail in the strategic study, as well as estimates of mortality and employment impacts of Covid-19 for various demographic segments.
“With the multidimensional effects caused by the Covid-19 pandemic, life-annuity insurers need to look at the consumer landscape from a variety of perspectives to consider both the risks and the opportunities,” said Roberta Lauria, an Assistant Vice President, Insurance Research at Conning.
“Even in this time of disruption, the life insurance protection gap is a useful tool to quantify the opportunity for life insurers. With a gap that is over 60% of current individual life insurance in-force, this is a large unmet need,” added Mary Pat Campbell, a Vice President, Insurance Research at Conning.
“Insurers must grasp this opportunity while mortality risk is still top-of-mind for consumers. Life-annuity insurers rarely get an opportunity like this to demonstrate the importance of the protection they offer.” added Steve Webersen, Head of Insurance Research.
“Covid-19: the Consumer Impact and Life Insurer Opportunities” and “Life-Annuity Consumer Markets, 2021” are available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.