2018: Life-Annuity Consumer Markets
Conning’s annual review of key consumer and product segments in life-annuity insurance is designed to keep insurers abreast of trends, activities, and growth opportunities. Conning analyzes consumer trends and their impact on insurer products and distribution activities. Demographic segments are analyzed over time, to bring into focus the shifts in population and consumer preferences.
1. Introduction
2. Executive Summary
3. Measuring the Insurer Opportunity
- Key Takeaways
- Quantifying the Life Insurance Opportunity
- Quantifying the Retirement Market Opportunity
- Protection Gaps: Significance for Insurers
- Putting the Pieces of the U.S. Market Together
4. Affluent and Middle Markets
- Affluent and Middle Market Key Takeaways
- Wealth and Income Growth Rates Drive Segmentation
- Economic Segmentation of the Market
- The Affluent Market
- The Middle Market
5. Baby Boomers
- Baby Boomer Key Takeaways
- Generations and Life Stages
- Demographic Profile
- Geographic Distribution
- Shrinking Generation, Shifting Needs
- Need for Life Insurance Continues…for Now
- Retirement Income Opportunities for Insurers: Rising Tide, Not Flood
- Opportunities, Challenges, and Consumer Expectations
6. Generation X
- Key Takeaways
- Sandwich Generation
- Demographic Profile
- Geographic Distribution
- Peak of Income, Peak of Pressures
- Internet, Digital, and Social Media
- Opportunities, Challenges, and Consumer Expectations
7. Millennials
- Key Takeaways
- Demographic Profile
- Geographic Distribution
- Large Market Segment Emerging in Adulthood
- Delayed Development
- Opportunities, Challenges, and Consumer Expectations
8. Women
- Key Takeaways
- Demographic Profile
- Longevity Issues
- Opportunities, Challenges, and Consumer Expectations
9. Hispanic Market in the U.S.
- Key Takeaways
- Demographic Profile
- Geographic Distribution
- Opportunities, Challenges, and Consumer Expectations
10. African-American Market
- Key Takeaways
- Demographic Profile
- Geographic Distribution
- Opportunities, Challenges, and Consumer Expectations
11. Asian-American Market
- Key Takeaways
- Demographic Profile
- Geographic Distribution
- Opportunities, Challenges, and Consumer Expectations
Introduction
The life insurance and annuity industry in the U.S. has found the path to strong growth elusive, as premium on both group life and individual life has had low growth in the past decade. As Baby Boomers age into retirement, and a similarly large generation is only in young adulthood, insurers have been struggling to attract new customers.
This study is part of a series investigating the U.S. life-annuity consumer. In this series, we review major trends in the U.S. population, concentrating on aspects that can have an impact on the individual life-annuity industry:
- Quantification of Opportunity. Conning estimates the opportunity for life insurance and annuities by looking at overall financial needs and resources for the U.S. consumer.
- Income Grouping. We also consider the market segmented by income levels, focusing especially on the issues of gaining wallet share from the Middle Market.
- Generations. Using the three largest adult generational divisions, Baby Boomers, Generation X, and Millennials, we segment the potential customer groups by age to investigate their financial security needs and their expectations.
- Demographic Markets. Other demographic slices have been elevated in importance. There are issues specific to women, especially in old age as women continue to outlive men. We also look at three large ethnic groups: Hispanics, African-Americans, and Asian-Americans, all of which are growing and are important in growing the U.S. life-annuity market.
Many U.S. consumers lie in the intersection of these groupings, and we will also look across some of those slices. For each slice, there can be different opportunities for life-annuity insurers as well as challenges in reaching that market; in addition, consumer expectations may differ by segment.