Industry Insights is our quarterly round-up of recent news and data on the state of the insurance industry today. The first several weeks of 2021 have been a steady improvement over last year, with potential good news coming for both consumers and carriers soon. Between fewer COVID-related restrictions, hybrid policies, a growing number of young buyers, and coalitions dedicated to closing the coverage gap, the following reports, articles, and press releases paint a picture of what this year might have in store for the industry.
Many first-time buyers of life insurance emerged during the pandemic, as one in four people surveyed by Life Happens said they bought their first policy because of COVID-19. This growing demand was met quickly and effectively as companies shifted to an all-virtual environment. Now that companies and clients have eased into a new normal, Forbes offers a forecast of the trends to look for in the months to come, predicting a rise in no-exam policies, reduced coverage rates for those with lower mortality risks, an increase in hybrid policies on the market and more.
Further elaborating on these studies of young buyers, this Money article offers data on just how steep this rise in demand has been in this demographic since last March. Some important numbers: among 2,200 Americans, 48% said COVID-19 was a major factor in their purchase of a policy, while 30% said it was a minor factor; 12% of these Americans plan to put more money into their coverage this year; and 19% of Gen Z respondents plan to spend more on life insurance this year.
On February 1, seven life insurance trade associations — LL Global, Life Happens, MDRT, NAIFA, NAILBA, Finseca, and the American Council of Life Insurers — united to create Help Protect Our Families with the purpose of closing America’s coverage gap. With about 60 million uninsured households in America today, this new coalition will pool resources and use their position to help those families whose financial security is in danger due to lack of coverage.
Traditional Milestones Continue to Shift as Americans Enter 2021 With a New Outlook on Life, Love and Life Insurance
Consumers are ready to secure their financial futures in a post-quarantine world, with 68% of the 2,000 Americans surveyed by Life Happens saying that they want to improve their habits when the pandemic finally eases up. Furthermore, 75% have said they want to improve their financial lives in the new year, with financial security being their most important milestone. Life insurance should prove to be an important addition to the plans of this activated consumer base.