2016: The Life-Annuity Distribution and Marketing Annual - Confronting a Distribution Challenge
Conning examines key issues affecting distribution channels and their development. In this edition we include a specific review of the DOL new Fiduciary Rule and expected impact on insurers. We analyze and highlight current marketing, social media and advertising best practices in the life insurance and annuity industry. A detailed advertising expense analysis and details of sales by channel are included.
2. Executive Summary
3. Key Distribution Trends in 2016
- Overview of DOL Fiduciary Impact
- DOL’s New Fiduciary Rule Disrupts Distribution
- DOL’s Uneven Impact on Insurers
- Fiduciary Rule Affects Distribution Channels
- Potential Insurers Responses
- Impact on Publicly Traded Insurers
4. Digital Distribution and Marketing Trends in 2016
- Robo-Advisors Continued Growth or Potential Shakeout?
- Insurers Social Media and Mobile Usage Continues
5. Advertising Expense Analysis
- Annuity and Life Company Advertising Expenses Increased in 2015
- Advertising Expenses by Company Size
- Multiline Insurer Advertising Expenses Driven by Property-Casualty Products
- Advertising Expenses 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
IntroductionSince 2013, we have reviewed trends and developments in life and annuity distribution and marketing. In this 2016 study, we build on prior analyses and current data to highlight key distribution and digital marketing issues and trends confronting life-annuity insurers.
With the Department of Labor’s new fiduciary rule, current distribution channels are likely to be under pressure. In this study, we examine the implications of this rule. How could the distribution landscape change in response to the new DOL rule? What could be the impact on insurers and how might they respond?
This edition of the study 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 2011 through 2015. In addition, we provide a product-level sales forecast through 2018.
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.