2017: The Life-Annuity Distribution & Marketing Annual - Digital Distribution Takes Off
This edition of Conning’s Life-Annuity Distribution and Marketing Annual examines the emergence of digital distribution, as well as distributor and insurer adjustments to the new DOL fiduciary rule. It also addresses key distribution and marketing trends, sales performance, and forecasts. We analyze and present best practices both in and out of the life insurance industry relative to consumer advertising, marketing, social media, and sales activities. All distribution channels are considered, along with multi-channel approaches.
2. Executive Summary
3. Key Distribution Developments in 2017
- Accelerated Underwriting and Digital Life Insurance Buying
- DOL Fiduciary Rule
4. Digital Distribution and Marketing Trends in 2017
- Robo-Advisors Developments and Trends
- Digital Marketing Trends and Developments
5. Advertising Expense Analysis
- Advertising Expense Ratios and Concentration
- Advertising Expenses Trends by Company Size
- Multiline Insurer Advertising Expenses Trends
- Advertising Expense Trends by Distribution Channel Strategy
6. Individual Life Insurance Sales by Channel
- Life Insurance Distribution Review and Forecast
- Life Insurance Sales Results by Channel
- Life Insurance Sales Results by Company Size
7. Individual Annuity Sales by Channel
- Annuity Sales Review and Forecast
- Annuity Sales Results by Channel
- Annuity Sales Results by Company Size
Since 2013, we have reviewed trends and developments in life and annuity distribution and marketing. In this 2017 study, we build on prior analyses and current data to highlight key distribution and digital marketing issues and trends confronting life-annuity insurers.
During 2016 and into 2017, the potential for digital distribution began to take off. Driving this emergence was the linking of accelerated underwriting with digital insurance agencies. As such, we may be witnessing the next stage in insurance distribution.
Of course, even as digital distribution gains strength, bricks-and-mortar distribution continues to generate the vast majority of premiums. However, the DOL (Department of Labor) fiduciary rule remains a significant disruptor in terms of compensation, compliance costs, and product availability. During 2016 and into 2017, both distributors and insurers are adjusting to the new rule even as they work to change it.
As in past editions, this edition continues our analysis of the digital marketing efforts of the 75 largest life insurance and annuity companies. These 75 insurers generated 95% of the combined life-annuity premium in 2016. We also continue our analysis of advertising expenses, agency expenses, and expense ratios.
Using statutory data and Conning’s proprietary analysis, we analyze individual life and annuity sales by product and channel from 2012 through 2016. In addition, we provide a product-level sales forecast through 2019.
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.