Industry pundits have, for many years, flagged as cause for alarm the lack of financial protection among Americans, especially those in the middle market. Just how concerned should we be? The answer would seem to be “very,” judging by a new study from Conning.
The investment management company’s annual 2015 “Life-Annuity Consumer Markets” report pegs the life insurance protection gap — an aggregate amount combining underinsured and uninsured Americans — at $20.3 trillion. That equates to 60 percent of current in-force life insurance.
“From [an] asset and lost income protection perspective, U.S. consumers are underinsured,” the report states. “Closing this gap has been a persistent challenge for the U.S. life industry, which may need new approaches to increase customer spending on life insurance products.
“Approaching the middle market may require a multifaceted approach, with financial security overall being the service sold, as opposed to particular products,” the report adds.