Life-Health Insurance: Am Best's Comprehensive Report

AM Best's Insurance Reports is a monthly magazine that provides indispensable insights into the financial performance of insurance companies worldwide. The publication offers in-depth analysis of insurer creditworthiness and financial strength, including balance sheet strength, operating performance, business profile, and enterprise risk management. It is a valuable resource for those seeking to understand the latest financial data, industry trends, and company information in the insurance sector. The magazine also covers a range of insurance-related topics, including life insurance, health insurance, auto insurance, and mutual insurance.

US Life/Health – 2023 Individual Life Premiums for Contracts

AM Best's Insurance Reports provide an in-depth analysis of the financial performance of insurance companies worldwide, including insights into their balance sheet strength, operating performance, business profile, and enterprise risk management. The reports are a valuable resource for understanding the creditworthiness and financial strength of insurers, with the latest financial data, company information, and analytical tools to enhance research.

The US Life/Health – 2023 Individual Life Premiums for Contracts – 2024 Edition, is one such report offered by AM Best. While the specific content of this report is not publicly available, the title suggests that it focuses on individual life insurance contracts within the US Life/Health insurance sector. It likely includes data and analysis on premium rates, contract terms, and benefits offered by various life insurance providers in the United States.

Life insurance is a crucial financial product that provides financial protection for individuals and their loved ones in the event of their death. It ensures that beneficiaries receive a death benefit, helping to cover expenses, replace lost income, and pay off debts. When choosing a life insurance provider, it is essential to consider factors such as financial stability, customer satisfaction, coverage options, and cost.

AM Best conducts thorough evaluations of insurance companies, assessing their balance sheet strength, operating performance, business profile, and risk management practices. Their ratings provide valuable insights into the financial stability and creditworthiness of insurers, helping consumers make informed decisions about their life insurance choices.

US Life/Health – 2023 Individual Annuities Premiums for Life Contracts

Overview

The US life/annuity insurance industry generated revenues of over $1 trillion in 2023, a decrease of about $10 billion from 2022. This industry provides three lines of insurance: annuities, accident and health, and life insurance. Independent agents sell over half of all life insurance policies, while affiliated or captive agents account for about a third of sales.

Individual Annuities

Annuities are insurance products that provide a guaranteed income stream in retirement. The annuitant makes periodic payments while working or a lump-sum purchase upon retirement. In 2023, individual annuity direct premiums and considerations surged by 21.8%third consecutive year of double-digit growth and the highest annual growth rate since 2002. This growth is attributed to a resilient domestic economy, rising interest rates, and a range of attractive products.

Leading Companies

Athene Holding Ltd.'s Athene Annuity and Life Co. is the industry's largest annuity writer, with $13.29 billion in production in the fourth quarter of 2023, accounting for 13.0% of the market. Massachusetts Mutual Life Insurance Co. ranked second, with $6.48 billion in individual annuity direct premiums and considerations during the same period, a 65.3% increase from 2022.

Outlook for 2024

High employment rates, robust equity markets, and other positive macroeconomic indicators suggest favourable conditions for sales of various types of individual annuities in 2024. The market is expected to remain competitive, with many participants and a wide range of attractively designed and priced products.

US Life/Health – 2023 Accident & Health Insurance Contracts

Accident and health insurance is a product of the life/annuity and property/casualty (P/C) sectors. It covers a range of health-related specialty products, including reimbursement for the time a policyholder is hospitalised or disabled, short- and long-term disability based on employment, and critical or catastrophic illness insurance. Accident and health insurance is not a substitute for health insurance but serves as a supplement to it.

Accident insurance, also known as supplemental accident insurance or personal accident insurance, provides cash benefits to help pay for expenses related to a qualifying accident. This can include ambulance care, physical therapy, and lost wages, among other things. Accident plans can help with the financial strain that can come with unexpected medical costs and health insurance gaps.

According to the 2023 Insurance Barometer Study, a record-high proportion of consumers (39%) said they intended to purchase life insurance within the next year. The proportion was higher for Gen Z adults (44%) and millennials (50%). The study also found that parents of minor children were more likely to own life insurance than the general population (59% vs. 52%) and were also more likely to acknowledge not having enough coverage (47% vs. 41%).

In 2023, annuities, which are a type of insurance contract that accumulates funds or pays out an income stream, accounted for 53% of life/annuity direct premiums written. Accident and health insurance accounted for 24% of direct premiums written, with annuities and life insurance products making up the rest.

US Life/Health – 2023 Group Annuities Premiums for Life Contracts

The 2023 Insurance Barometer Study revealed that a record-high proportion of consumers (39%) intended to purchase life insurance within the next year, with the proportion being even higher for Gen Z adults (44%) and millennials (50%). This shift in consumer behaviour has led to a change in focus for many companies in the life insurance industry, with the emphasis now on underwriting annuities, which accounted for 53% of life/annuity direct premiums written in 2023.

Annuities are insurance contracts that provide income payments over a fixed period or for the lifetime of the contract holder or their beneficiaries. They can be purchased with either a lump sum payment or through multiple payments over time. Annuities offer a range of benefits, including guaranteed income for life, protection from market loss, and conservative growth potential, making them an attractive option for those planning their retirement.

The top writers of life/annuity insurance by direct premiums written in 2023 included Massachusetts Mutual Life Insurance Co., New York Life Insurance Group, Prudential Financial Inc., and Western & Southern Financial. These companies have strong financial ratings and offer a range of life insurance and annuity products to meet the diverse needs of their customers.

When considering the purchase of an annuity, it is essential to compare prices and customer reviews between different insurers. Additionally, working with a financial professional can help guide individuals in making informed decisions about their financial future, including the selection of appropriate life insurance and annuity products.

US Life/Health – 2023 Group Life Insurance Premiums for Life Contracts

Group life insurance is a type of insurance offered by an employer or large-scale entity, such as an association or labour organisation, to its workers or members. It is usually inexpensive and may even be free for certain employees. It is common across the United States.

Group life insurance is a single contract for life insurance coverage that extends to a group of people. Companies can secure lower costs for each individual employee by purchasing group life insurance policy coverage through an insurance provider on a wholesale basis for its members.

Group life insurance is typically term life insurance, which is only in force for a set number of years. It is in contrast to whole life insurance, which is permanent and has higher premiums and death benefits. Whole life insurance is the most popular type of life insurance.

Group life insurance policies are controlled by the employer or organisation, and coverage ends when an employee leaves the company or organisation.

Frequently asked questions