Life Annuity and P&C Insurance Trends


To investigate trends specifically on life annuity and property and casualty (P&C) insurance products in New York and New Jersey, including market trends, insurance needs, challenges, and pain points to inform the strategy of an insurance and benefits broker in the region.

Early Findings

Information on trends for these specific products is limited at the state level. We instead have found the following data relative to life and P&C insurance trends in the United States.

Life Annuity Insurance Trends
  • Life Insurance and annuities are shifting towards “best interest” requirements nationwide due to federal securities and state regulations.
  • The New York Department of Financial Services’ Regulation 187, already in effect for annuities, extended for life insurance products on February 1. This regulation establishes standards and procedures so that recommendations remain in the “best interest of the consumer”. New Jersey and Nevada are two other states considering best interest policy.
  • Studies have found that the life insurance industry has failed to communicate the importance and value of its products, resulting in a CAGR of 1.7% and the American public paying more attention to retirement accounts and mutual funds.
  • Beginning in 2018, insurers are facing the implementation of new standards in measurement, recognition, and disclosure of insurance liabilities and deferred acquisition costs. Large public companies must comply with new standards beginning 2021; other entities must start in 2023. Insurers therefore face new challenges in modernizing data platforms, analytics capabilities, and automation.

Property and Casualty Trends
  • Intact Financial Corporation has stated that the US P&C market is “ripe” for consolidation, with commercial MGA direct premiums increasing at an annualized rate of 8.5% over the past 20 years.
  • Kroll Bond Rating Agency called the American P&C market stable in 2020, with key strengths including strong capital, better prices, and disciplined underwriting. These strengths are believed to outweigh declining support to profit margins from decreasing favorable reserve development, increasing loss costs, social inflation, ongoing catastrophe losses, rising reinsurance costs and retentions, and low interest rates.

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