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U.S. life insurers are getting much more of their retail product premium income from annuities than from life insurance coverage today.
Particular person annuities accounted for $344 billion of life insurers’ $1.5 trillion in direct written premiums in 2023, or about 24% of the whole, in keeping with new industrywide totals from A.M. Greatest.
Solely $168 billion of the premiums, or 11% of the whole, got here from particular person life insurance coverage.
Direct written premiums elevated 16% between 2022 and 2023 for particular person annuities and fell 5.3% for particular person life.
What it means: Because the 69 million child boomers rush towards retirement, the main target at life insurers is far more on earnings planning. One query is whether or not elevated boomer curiosity in property planning and a doable growth of the property tax in 2026 will push the income pendulum again towards life insurance coverage.
The information: A.M. Greatest is considered one of a small variety of what the U.S. Securities and Trade Fee classifies as nationally acknowledged statistical score organizations.
The agency will get its insurance coverage firm efficiency information from the official reviews the insurers file with state insurance coverage regulators, primarily based on the regulators’ statutory accounting ideas, reasonably than the U.S. usually accepted accounting ideas that public corporations use.
As a result of A.M. Greatest has full statutory monetary information from all insurers which have met their submitting deadlines, it has a extra full image of the market than companies that rely solely on the annual reviews filed by publicly traded insurers or on voluntary insurer survey information.
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