Life insurers are striving to meet skyrocketing customer expectations in order to cultivate business growth. However, even in the midst of significant digitalization efforts, many carriers still suffer from too many manual processes which are introducing human error, slowing workflows and degrading CX. PHILADELPHIA, Aug. 16, 2022 /PRNewswire/ - In a recent research study conducted by Forrester Consulting on behalf of Equisoft, findings reveal that life insurance companies are struggling to support manual processes in their policy administration infrastructure. Despite significant digital transformation, 64% of respondents say that manual data collection is still decreasing the speed of...
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How life insurers can thrive in the new normal Bangladesh has great potential to increase the contribution of its life insurance industry to the economic progress of the country. Currently, life insurance penetration in the country remains at less than 0.5% of GDP and while there have been good developments taking shape in recent years, the Covid-19 crisis has enabled insurers to look at the short to long term challenges through a new lens of business competitiveness and customer needs. The purpose of all life insurance companies is to give customers financial support and protection to help them manage unexpected fiscal surprises in their lives. Hence, it is extremely important that...
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A group for state insurance regulators has told Sen. Sherrod Brown that its members are well-equipped to oversee the private equity firms that now own many U.S. life insurers. State regulators are not seeking help from Washington with monitoring those private equity firm owners, the officers of the National Association of Insurance Commissioners wrote in a public letter sent to Brown earlier this week. Brown is the chairman of the U.S. Senate Banking, Housing and Urban Affairs Committee. The NAIC officers told Brown that U.S. life insurers have been writing complicated products and using large, complicated investment strategies for some time. “Our system has experience at assessing and...
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US life insurers’ mortgage holdings grows by 6.6% in 2021: AM Best According to a new AM Best report, mortgage loan holdings for the US life insurance industry grew by 6.6% in 2021, to $639.8 billion, in line with the 10-year average, after depressed growth of 3.8% in 2020. The report, titled, “Loan-to-Value Rises, Debt Service Coverage Weakens, for U.S. Life Insurers”, highlights that the COVID-19 pandemic shuttered businesses in 2020, which ultimately led to a decline in revenue at retail stores, the services sector and hotels, pressuring borrowers’ ability to pay their rent or mortgage loans. However, with life returning to somewhat normal, the impacts of the pandemic still can be seen...
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A lthough facing challenges, the US life insurance and retirement industry has enormous potential to grow. Our analysis reveals insights on how best to capitalize on this opportunity. EY researchers estimate that by 2030, there will be a $240 trillion retirement savings gap and a $160 trillion protection gap. Insurers are uniquely positioned to address these gaps with products that offer legacy protection, tax-deferred savings growth and guaranteed income for life. In this article, we explore how two products can be used to meet investors’ savings and protection needs: permanent life insurance (PLI) and a deferred income annuity with increasing income potential (DIA with IIP), which...
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India’s life insurance industry to reach $150.6bn by 2026: GlobalData According to analysts at GlobalData, India’s life insurance industry is expected to grow at a compound annual growth rate (CAGR) of 10.3% through 2026, driven by growing awareness and positive regulatory landscape. It is forecasted to grow from $92.3 billion in 2021 to $150.6 billion in 2026, in terms of gross written premiums. In 2022, according to Anjuli Shrivastava, Insurance Analyst at Global Data, the life insurance industry is set to grow by 10.2%; driven by the development of digital distribution channels and product innovation. Shrivastava commented: “The life insurance industry in India is witnessing a...
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The life insurance industry in India, in terms of gross written premiums, is set to grow at a compound annual growth rate (CAGR) of 10.3% from ₹7 lakh crore ($92.3 billion) in 2021 to ₹11.4 lakh crore ($150.6 billion) in 2026, says a report. As digital distribution channels and product innovation improve, the life insurance industry in India is projected to grow by 10.2% in the year 2022 alone, says London-based data analytics and consulting company GlobalData Plc. The report finds the projection of double-digit growth for the life insurance industry in India is twice the global average of 5.5%, thanks to increased penetration, positive regulatory developments, and growing awareness. Anjuli...
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Clients with life insurance and annuities may be watching the bear market rummaging around on the mutual funds’ picnic table, and wondering what it means for them. Campers know that bears hardly ever go into the tents of responsible campers. But what if campers accidentally left some toothpaste in their backpacks? And just how crazy is that bear? Life insurers, advisors and clients now have to wait to see just how good life insurers were at bear market proofing. The Bear Market The stock market enters a bear market what stock prices drop 20% or more from recent highs. Because of efforts by the Federal Reserve Board to wean the economy off cheap borrowed money, and concerns about turmoil in...
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The ‘great resignation’ is piling pressure on life insurers that are racing to meet long duration targeted improvements (LDTI), a technology expert has told Insurance Business. Life insurers are facing a “real strain” in meeting LDTI, driven in part by a resources and skills gap, RNA Analytics actuarial product director John Bowers said. Bowers said he believed that, given the regulation date has been pushed back multiple times, carriers will be ready for the transition. However, he said that there still are “challenges going on currently” that are driving up costs. Modified accounting standard LDTI was first mooted by the Financial Accounting Standards...
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Some of the things you might hide from friends are fair game to insurers when you apply for life insurance. And thanks to the streams of electronic data available today, life insurance companies can gather information on you faster than ever before. The prescription drugs you’ve taken, that DUI a few years back, a bankruptcy — all these pieces of information will likely come to light and affect your life insurance rates. Life insurers are increasingly relying on big data resources to speed up the application process and reduce their costs to issue policies. When you apply, insurers can buy data from a variety of sources. Here’s some of what’s available. ExamOne, a part of Quest Diagnostics...
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