2019: Life-Annuity Distribution & Marketing Annual - Moving Towards Omnichannel
This study explores the digitization of life industry marketing and distribution, insurer advertising spends, and the challenges facing the sector, such as regulation and expense pressures. It also analyzes product sales and policy development by channel. The study will focus on the development and current state of omnichannel marketing and distribution within the life-annuity industry.
2. Executive Summary
3. Key Distribution Developments in 2019
² Omnichannel Strategies an Increasing Core Competency
² Omnichannel in the Life-Annuity Industry
² Fiduciary and Suitability Rule Developments
4. Life Insurance Policy Development
² Life Insurance Market Penetration
² Channel Differences in Market Penetration
5. Advertising Expense Analysis
² Advertising Expense Ratios and Concentration
² Advertising Expenses Trends by Company Size
² Multiline Insurer Advertising Expenses Trends
² Advertising Expense Trends by Distribution Channel Strategy
6. Individual Life Insurance Sales by Channel
² Life Insurance Distribution Review and Forecast
² Life Insurance Sales Results by Channel
² Life Insurance Sales Results by Company Size
7. Individual Annuity Sales by Channel
² Annuity Sales Review and Forecast
² Annuity Sales Results by Channel
² Annuity Sales Results by Company Size
² E-Commerce Drivers Emergence of Omnichannel
² Data Analytics Accelerates Omnichannel
² Customer Experience Delivers the Results
² Omnichannel Strategies Integrate the Pieces
IntroductionSince 2013, we have reviewed trends and developments in life and annuity distribution and marketing. In this 2019 study, we build on prior analyses and current data to highlight key distribution and marketing issues and trends confronting life-annuity insurers.
As consumer use of multiple channels to interact with product and services providers within certain industries continues to grow, life-annuity insurers are responding by developing their own digital platforms to supplement their traditional bricks and mortar agencies. The challenge facing many product and service providers, including life-annuity insurers, is how to integrate these multiple channels to improve their customers’ shopping and service experience. This has led to the emergence of omnichannel marketing and distribution strategies to address that challenge. In this edition, we focus on omnichannel strategies and identify where the life-annuity industry stands in terms of the development of omnichannel strategies.
In 2019, a continuing area of concern for both distributors and insurers has been the evolution of fiduciary and suitability rules. We review the development of those rules and identify potential impacts on life-annuity distribution.
The life insurance industry continues to generate steady sales, in terms of premium and face amount. However, the net number of policies added to insurers books continues to decrease. We examine the factors driving that result.
Increasing market penetration requires continued investment in advertising. However, cost control remains a key concern for managers. As before, our analysis of advertising expenses, agency expenses, and expense ratios provides some insight into how companies are using their advertising budgets. Using statutory data and Conning’s proprietary analysis, we analyze individual life and annuity sales by product and channel from 2014 through 2018. In addition, we provide a product-level sales forecast through 2021.
Our analysis of distribution and marketing developments among life-annuity insurers provides both an industry level overview as well as a comparative analysis based on company size.