United States Life-Annuity Distribution & Marketing Annual - Weathering the Storm

The 2021 Life-Annuity Distribution and Marketing Annual is this in-depth look at key market-facing issues affecting insurers. In this edition, the publisher reviews Covid-19’s financial impact on distribution in 2020. It further examines the role private equity continues to play, along with other key factors, in driving distributor consolidation. Even before Covid-19, the number of new policies were often lower than the number of polices lapsed and surrendered.

As a result, the life industry is not keeping up with population growth. The author continues analysis of in force contract development across distribution channels. Increasing market penetration requires continued investment in advertising. However, cost control remains a key concern for managers. As before, advertising expenses, agency expenses, and expense ratios provides some insight into how companies are using their advertising budgets. Using statutory data and proprietary analysis, the author reviews individual life and annuity sales by product and channel from 2016 through 2020. In addition, a product-level sales forecast through 2023 is provided.