Opportunities in Reaching the Middle Market with Life Insurance: New Pathways to Growth


Mike Warner  
Conning, Inc.

Conning Research: Life Insurers Have $10.2 Trillion Opportunity in the Middle Market

--Predictive modeling and other technologies may be the key for insurers

(Hartford, CT) March 13, 2012—The protection gap for the middle market is now estimated at $10.2 trillion, representing a huge opportunity for life insurers, according to a new study by Conning Research & Consulting.

“Over the past five years the missed opportunity in the middle market for life insurers has grown significantly, and our latest estimate is that it has reached $10.2 trillion,” said Terence Martin, director at Conning Research & Consulting. “The financial crisis and recession had far-reaching effects on income, asset values, and debt levels, all of which combined to drive the increased size of this missed opportunity. In addition, the rising cost of healthcare, especially in the middle market, may be an emerging, largely unrecognized need for life insurance planning. The question now is whether insurers can harness available new technologies to actually meet this burgeoning need.”

The Conning Research study, “Opportunities in Reaching the Middle Market with Life Insurance,” presents Conning’s estimates of the middle market protection gap, analyzes the barriers to reaching these potential customers, and reviews opportunities for technology-assisted solutions to these issues. 

“There are significant challenges to life insurers seeking to penetrate the middle market,” said Stephan Christiansen, director of research at Conning. “Those challenges relating to distribution—cost, access, and others—may finally be eased by the increased use of the internet channel and social media marketing support. For insures struggling with the cost of underwriting, the implementation of predictive modeling and a more automated underwriting process holds promise. As insurers seek growth in the recovering economy, they will be analyzing the technology commitment needed to succeed in middle market and weighing that against the significant opportunity.”

“Opportunities in Reaching the Middle Market with Life Insurance” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.

About Conning Research & Consulting

Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers.  Conning Research & Consulting has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.