Life application activity shows solid growth in first half of 2021

[Insurance Forums Staff]

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Life application activity shows solid growth in first half of 2021

MIB Life Index finds older age bands beginning to outpace younger ones in YOY growth.

Continue reading the Original Article.

 

[InsuranceMonkey]

In 2020 when Covid hit I was working for Principal Financial (Des Moines IA) as a Life Underwriter. By the end of summer sales of term were up 40%, by fall 50%. We couldn't keep up. Worked evenings and weekends reviewing, underwriting, approving applications.

I think people came to terms with their mortality and suddenly taking care of the family after they were gone became very real.

So Principal's recent announcement they were getting out of the Retail Life market ( they're still writing business coverage) is perplexing to me. 2020 was a bumper year.

 

[Allen Trent]

In 2020 when Covid hit I was working for Principal Financial (Des Moines IA) as a Life Underwriter. By the end of summer sales of term were up 40%, by fall 50%. We couldn't keep up. Worked evenings and weekends reviewing, underwriting, approving applications.

I think people came to terms with their mortality and suddenly taking care of the family after they were gone became very real.

So Principal's recent announcement they were getting out of the Retail Life market ( they're still writing business coverage) is perplexing to me. 2020 was a bumper year.

Sales of insurance are no indicator of business success if the product is underpriced with regard to any of the variables in the math equation of mortality, expenses & rate of return on investments. Principal likely doesn't like the math forecast of sales at prices too low to sustain the actual high expenses being incurred & the historic low fixed interest rates they can get on investing premiums & surplus. The interest rates also can force higher reserves to be required causing less money to be invested I believe. Technology costs & constant repricing efforts also have likely caused expense ratios to escalate. Alot of big name carriers have gotten out of life insurance in recent years. Off top of my head, I can think of Jackson National, Allstate, Met Life, Voya

 

[InsuranceMonkey]

Good point. I'm clearly not an actuary! Thanks for some insight.