2020: Life-Annuity Distribution & Marketing Annual - COVID-19 Impacts on Distribution



Price : $1,750.00



This study explores the impact of the COVID-19 pandemic on life industry marketing and distribution, as well as 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.



    1.     Introduction

    2.     Executive Summary

    3.     Key Distribution Developments

²     COVID-19 Impact on Distribution

²     Regulation

²     Distribution Consolidation

    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 by Premium Ranking Group

²     Multiline Insurer Advertising Expense 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

Appendix


Introduction

Since 2013, we have reviewed trends and developments in life and annuity distribution and marketing. In this 2020 study, we examine the impact of COVID-19 on distribution. As part of this examination, we look at how insurers and distributors are responding to these impacts.

We further explore the key distribution and marketing issues and trends confronting life-annuity insurers. A continuing area of concern for both distributors and insurers in 2020 is the continued evolution of fiduciary and suitability rules. We review the development of those rules and identify potential impacts on life-annuity distribution.

In addition to regulation, distributor consolidation continues to reduce the shelf space available for insurers to market their products. We analyze the causes and focus on the role private equity is playing in this consolidation.

Even before the impact from COVID-19 on sales, the net number of policies added to insurers’ books continued to decrease. As a result, the life industry is losing market penetration when compared to population growth. We examine the factors driving that result to understand what role distribution plays in addressing that challenge.

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 2015 through 2019. In addition, we provide a product-level sales forecast through 2022.

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.

The 2020 Life-Annuity Distribution and Marketing Annual is Conning’s in-depth look at key market-facing issues affecting insurers.