As this year comes to a close, our newest edition of Industry Insights features significant updates on the state of the life insurance industry at the end of 2020. Below you will find reports, articles, and press releases on a variety of topics as well as a LIMRA forecast for both whole and term life products in the years to come.
Virtually no industry was unaffected by the coronavirus pandemic, but life insurance faced some unique challenges in 2020. With low interest rates, market fluctuations, record unemployment, and abrupt workplace changes, companies across the board saw a drop in life insurance sales during the first part of this year. However, it did not take long for the pandemic to cause an increasing number of people to see the importance of life insurance, causing sales to rebound quickly. Taking each of these factors into account, LIMRA has published a forecast on life insurance sales which projects growth in 2021 and 2022.
Deloitte published a report in October 2020 analyzing the operational, economic, and actuarial impacts of COVID-19 on the life insurance and annuity industries. This report outlines certain short- and long-term challenges insurers could face in the coming months. It also considers the impact of future disruptions and forecasting as the pandemic continues in 2021, so be sure to read this report for valuable insights into potential changes to come.
The Life Insurance Providers Industry Is Now Including Protection Against Current and Future Pandemics In Their Policies
According to The Business Research Company’s report on the industry, some insurance companies are incorporating protections against diseases and side effects that come about as the result of viruses. Around the world, companies like Brighthouse, Lincoln Financial, Prudential, Mutual of Omaha, and others are making efforts to learn from the coronavirus pandemic by protecting against any future virus that may result in a large number of unforeseen deaths. Check out this press release for more information on this market change.
The long-term effects of COVID-19 are still unknown, even for asymptomatic cases, leaving some insurers without the data they need to properly assess risk. According to Bloomberg earlier this December, some life insurance customers who have tested positive are already having a harder time getting coverage. Read this piece to stay informed on the effects the pandemic may have on underwriting and application rejections in the coming months.