Life Insurance A Mature Business? No Way, Says Greenberg
A prominent industry executive insists there is still a large, untapped treasure of life insurance sales left in the U.S. market.
“Theres a common belief that the life insurance industry is mature,” said Maurice R. Greenberg, chairman and CEO of American International Group Inc., at the LIMRA International annual meeting here last week.
“I dont buy it,” Greenberg said.
Every day, people are entering the job market, getting married and having children, and life insurance plays an important role in each of those life stages, he said. “The market is enormous.”
But he lashed out at unnamed life insurance carriers that he accused of building market share at the expense of fiscal prudence. Price competition that pursues sales blindly is a serious problem for the industry, he warned.
“Well give up market share to companies that fail to maintain proper discipline,” he said. “In the graveyard of life insurance, there are new headstones being dug every day. Those who are doing that know who Im talking about.”