Lifted by a continued economic strength, accelerated new business from direct writers and a shift in demand to asset-accumulation products, life and health insurers and reinsurers will see modest growth next year, predicts Donna Kinnaird, president, Swiss Re Life & Health North America.
Despite moderating sales of protection products, direct writers will see premium grow because of increased demand for asset accumulation products with guarantees and living benefit riders aimed at retirement security, Kinnaird said during an economic review and outlook meeting held here by Swiss Reinsurance Company.
Among the results will be accelerating demand for universal and variable universal live insurance next year, Kinnaird predicted.
Kinnaird noted the industry is issuing innovative retirement products as investors move their 401(k) funds into retail accounts.
She also forecast increased mergers, acquisitions and corporate spinoffs as a result of the availability of a capital surplus in the life insurance industry