After a 2009 decline, sales are rising, though at a very slow rate
OLDWICK, N.J., April 22, 2015—This episode of A.M.BestTV examines the continuing flat sales that life insurers are encountering and what new distribution channels they are pursuing to entice consumers.
Click here to view the video program.
In the episode, A.M. Best Vice President Stephen Irwin and Assistant Vice President Thomas Rosendale consider current life insurance trends. “In 2009, there was about a 15%-16% decline in annual premiums as measured by LIMRA. Since then there has been steady growth, but only in the low to mid-single digit area,” said Rosendale.
With life insurance ownership is at a 50-year low, companies are seeing the need to become innovative. Irwin addressed this issue. “Some companies are focusing on wellness incentives that allow customers to have data recorded, if they want, which focuses on their life style.
With this information customers can receive lower premiums and discount programs from the company.” Additionally, according to Michael Doughty, president and general manager at John Hancock Insurance Company, his firm is ahead of the curve. “John Hancock is establishing a new approach to life insurance. This approach rewards and recognizes people that are focused on healthy living.”
Other people who appear in this episode:
- Kent Sluyter, chief executive officer of individual life insurance and agency distribution at Prudential, Inc.;
- James A. Mallon, president and chief executive officer at American General Life Insurance Companies;
- Robert Kerzner, president and chief executive officer at LIMRA; and
- Michael Fanning, executive vice president at MassMutual Financial Group.
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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv. A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.