Courtesy of LIMRA Studies
In 2019, LIMRA is anticipating U.S. particular person life insurance coverage gross sales to rise three p.c to $15 billion. This development will probably be primarily pushed by positive factors in disposable earnings and bond charges, coupled with low unemployment.
For the previous decade, listed common life (IUL) has been the success story of the person insurance coverage market, with annualized premiums growing annually because of low rates of interest and a powerful inventory market.
Whereas LIMRA nonetheless expects IUL development in 2019, the driving forces of that development will change. LIMRA expects fairness markets to gradual, however rates of interest will proceed to rise.
With regard to know-how, LIMRA predicts synthetic intelligence (AI) to develop each within the variety of corporations using it and in its vary of purposes. Whereas many corporations are already utilizing this know-how through chatbots and automatic underwriting, a big proportion of executives see AI as being extraordinarily necessary to enterprise within the subsequent three years.
AI is a pure extension of predictive modeling constructing and firms will look to know-how to make the most of their huge quantity of knowledge and to boost the present stills of knowledge scientists.
In keeping with LIMRA, this yr may also see a rise in entry to office retirement financial savings plans for personal sector workers. This will probably be because of elevated curiosity in multi-employer plans (MEPs) and the rise of FinTech.
Current federal initiatives, reminiscent of President Trump’s govt order to increase the variety of small employers who can supply MEPs and the proposed Division of Labor rule increasing MEPs, have additionally helped pave the best way for elevated entry to office retirement financial savings plans in 2019.
One space LIMRA sees a slowdown in development is with supplemental advantages. Whereas the expansion of total office advantages have been average at finest, supplemental plans have seen some success lately because of the rising reputation of excessive deductible well being plans (HDHPs).
Since HDHPs go away workers open to greater dangers and prices many have turned to supplemental plans to assist handle these prices and dangers reminiscent of vital sickness protection, hospital indemnity and accident insurance coverage.
In October, Kaiser Well being Information recommended the gross sales of HDHPs have peaked and can now begin to development down. LIMRA believes if that downward development is to occur and proceed, then the gross sales of supplemental plans will doubtless comply with swimsuit.