4 ID Trends 2020
Editor ’ s note :
Pam Sheehan Senior Director , Strategic Partnerships & Media Initiatives NAILBA PSheehan @ nailba . org
I would be stating the obvious to say that 2020 has been unusual in so many ways . New types of challenges that have presented both different kinds of opportunities and frustrations are having a significant impact on the trends that we are seeing in the independent distribution ( ID ) market .
From consumer sentiment about life insurance , to sales swings in the annuity market , and the pandemic ’ s impact on mental health in the clients ’ workplace , predictability has become an anomaly . To better understand what is going on in the market , ID Trends has gathered the results from recent studies and surveys by LIMRA , McKinsey & Company , the Secure Retirement Institute , and Wink , Inc .
With this annual resource being distributed within the virtual event , NAILBA 39 Engage , and to independent insurance professionals across the country , it now reaches over 340,000 . We hope the content is useful as a catalyst for conversation and supportive documentation for the educational sessions and workshops at NAILBA 39 Engage , a free virtual 3-month event .
Whether in-person or virtual , NAILBA is where the independent distribution market gets down to business . We hope ID Trends provides the facts and ideas you need to further your business .
All the best !
Life Trends
Understanding life insurance buying decisions in 2020
LIMRA research shows after five consecutive quarters of declines , life insurance policy count increased 2 % in the second quarter of 2020 , primarily driven by direct-toconsumer sales . Monthly research results also suggest the number of policies sold will continue to grow in the third quarter , however the change to the CSO table at the end of 2019 spurred an unusually high sales in the fourth quarter of 2019 . With this in mind , LIMRA is forecasting a decline of less than 5 % in 4Q 2020 , compared with prior year . Other key takeaways from recent LIMRA studies : Life insurance ownership has declined steadily over the past 10 years — from 63 % to 54 %. 30 million households are uninsured and 30 million are underinsured , representing 48 % of U . S . households . The average coverage gap is about $ 200,000 . Between March 2020 and July 2020 , the number of Americans saying they felt a heightened need for life insurance increased from 49 % to 58 %.
29 % of Americans say they are more likely to purchase life insurance within the next 12 months because of COVID-19 . Nearly 3 in 4 younger couples , with or without children , say the pandemic makes them more likely to buy life insurance in the next 12 months . All survey respondents who are single and have a child / children indicated they are more likely to buy life insurance . More than half ( 52 %) of older couples with children expressed their likelihood to buy life insurance in the next 12 months . Consumers prefer a hybrid of online tools and working with an advisor . Since the pandemic began , 38 % of consumers purchased life insurance using this hybrid approach , up 10 % from before the pandemic . In fact , more than a quarter of consumers said working with an agent helped ease the purchasing process .