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July 19, 2018 at 06:58 PM
Analysts at Conning aren’t letting reporters see their new life and annuity distribution and marketing review.
They have included a few interesting numbers in an executive summary.
One has to do with the relationship between “first-year direct” life insurance premiums and new life insurance sales.
(Related: 5 Wild Cards That Could Brighten Q2 Life and Annuity Issuer Earnings)
Conning analysts have to be careful to cut renewal premiums out of the total direct premiums, because life insurers get a lot more of their total direct premium revenue from renewal premiums.
From 2013 through 2017, renewal premiums averaged 73% of life insurers’ total direct premiums, Conning said.
Analysts at the Hartford, Connecticut-based firm also revealed that:
- 60 of the 276 insurer groups that reported individual life insurance sales reported no individual annuity sales.
- Life insurers have been selling 9.5 million to 11 million new policies per year, but the number of lapses and surrenders is higher than the number of new policy sales.
- Sales look reasonably stable, because the death benefits are higher, but market penetration is down.
Here’s a look at five other recent life market happenings.
1. American International Group Inc.
AIG’s Houston-based life insurance business has added online centers for its indexed universal life (IUL) products.
The company has posted a center for its Quality of Life IUL products at http://www.aig.com/QoLIUL.
The company has added an online center for its other IUL products at http://www.aig.com/IUL.
The company also has a collection of life insurance-related tools available here.
AIG writes its IUL products through American General Life Insurance Company.
2. Lincoln Financial Group
Lincoln Financial had the idea of reducing coverage prices.
The Radnor, Pennsylvania-based company says it will reduce prices for customers ages 30 and older who buy Lincoln LifeElements Level Term life insurance with a death benefit of $1 million or more.
The company will also lower premiums for purchasers ages 55 and older who choose a death benefit of $500,000 or more.
Lincoln did not say why it chose to lower rates for those specific types of customers.
The company writes the policies through Lincoln National Life Insurance Company.
3. Principal Financial Group Inc.
Principal is expanding a program that rewards life insurance insureds’ for taking steps to improve their physical and financial health.
The Des Moines, Iowa-based company was offering its My Principal Lifestyle app program to holders of a few policies in just three states.
Now, any qualifying life insurance policyholder in an approved state can participate fully in the program.
