2014 Life-Annuity Consumer Markets Annual


Michael Warner
Conning, Inc.

Conning—Increasing Diversity and Fragmentation of U.S. Population: A Key Area of Focus for Life Insurers

--Conning Estimate: $15.8 Trillion Protection Gap in 2014, Equivalent to 50 Percent of In-Force Individual Life Insurance

(Hartford, CT) May 20, 2014—The consumer market for life and annuities shows growth potential, but is also challenged by increasing diversity in demographic, lifestyle and consumer preferences, according to a new study by Conning.

“Life insurers are working through the issues that stem from increasing diversity in the life-annuity consumer market,” said Mary Pat Campbell, analyst at Conning. “The U.S. population as a whole has become more ethnically diverse over the past few decades, especially as immigration restrictions were loosened and as fertility patterns changed for the overall population. In our research we look closely at the very different needs and opportunities for life insurers represented by three of the largest cultural markets in the U.S., defined by ethnicity/race: Hispanics, African-Americans, and Asian-Americans.”

The Conning study, “2014 Life-Annuity Consumer Markets Annual” reviews the extent and impact of changing age profiles, increasing diversity, socioeconomic shifts, lifestyle changes, cultural markets, and consumer attitudes. 

“Generational change and shifting needs are also driving life insurer strategies,” said Steve Webersen, director of research at Conning. “The different needs among the various age groupings are causing a shift in the industry’s product offerings and distribution planning. Our estimate of the consumers’ life insurance protection gap of $15.8 trillion, although improved from a year ago, still remains above pre-crisis levels. Those insurers that can properly plan for and address the specific needs of more finely targeted market segments will find success in this fragmenting market.”

2014 Life-Annuity Consumer Markets Annual” is available for purchase from Conning by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.

About Conning
Conning (www.conning.com) is a leading investment management company for the global insurance industry, with more than $85 billion in assets under management as of March 31, 2014 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, and Goodwin Capital Advisers, Inc. The company's unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning is focused on the future, providing clients with innovative solutions, leveraging its global capabilities, investment experience, and proprietary research. The company is headquartered in Hartford, Connecticut, with additional offices in Purchase, London, Cologne, and Hong Kong.