{"id":18571,"date":"2020-06-03T14:01:55","date_gmt":"2020-06-03T18:01:55","guid":{"rendered":"https:\/\/insurancenewsnet.com\/?post_type=innarticle&amp;p=5529019"},"modified":"2020-06-03T14:01:55","modified_gmt":"2020-06-03T18:01:55","slug":"insurance-will-grow-and-flow-through-different-channels-analyst","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/06\/03\/insurance-will-grow-and-flow-through-different-channels-analyst\/","title":{"rendered":"Insurance Will Grow And Flow Through Different Channels: Analyst"},"content":{"rendered":"<figure class=\"featured-image left pull-box small pull-box hide-md hide-sm\">\n<img decoding=\"async\" loading=\"lazy\" width=\"693\" height=\"560\" src=\"https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-693x560.png\" class=\"attachment-medium-thumb-post size-medium-thumb-post wp-post-image\" alt><img decoding=\"async\" loading=\"lazy\" width=\"693\" height=\"560\" src=\"https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-693x560.png\" class=\"lazyload attachment-medium-thumb-post size-medium-thumb-post wp-post-image\" alt data-srcset=\"https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-693x560.png 693w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-900x727.png 900w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-175x141.png 175w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-1015x820.png 1015w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-661x534.png 661w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-183x148.png 183w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2-322x260.png 322w, https:\/\/insurancenewsnet.com\/wp-content\/uploads\/2020\/06\/Life2.png 1020w\" data-sizes=\"(max-width: 693px) 100vw, 693px\"><\/figure>\n<div class=\"article-content\">\n<div><span><span><br \/>\n<\/span><br \/>\n<\/span><span><span><br \/>\n<\/span><br \/>\n<\/span><span><br \/>\n<\/span><\/p>\n<div>\n<p>Insurance products remain solidly profitable, but big change is coming in who sells them and how they are sold, one leading industry analyst predicts.<\/p>\n<p>More fee-based products, new channels and growth in direct-to-consumer sales are some trends Chip Roame expects in the coming years. Roame, managing partner of Tiburon Strategic Advisors, characterized insurance products as being in a natural transition phase.<\/p>\n<p>\u201cWe still think the industry needs to consolidate quite a bit,&#8221; Roame said, adding that more products will be pushed out through other channels besides agents. \u201cAs these products are more widely available, I think that drives pricing, that drives competition, that drives profit \u2026 that drives a lot of things.\u201d<\/p>\n<p>Overall, insurance is about a $2 trillion industry, Roame said during a recent webinar. That is split between life\/health ($1.2 trillion in 2019 premium) and P&amp;C ($708 billion).<\/p>\n<p>But the relationship is reversed when it comes to profits, Roame noted. P&amp;C sales accounted for about 61% of the industry&#8217;s $102 billion profit.<\/p>\n<p>MetLife remains the king of insurance, writing $103 billion in 2019 premium for about a 5% share of the market. State Farm followed with $66 billion in premium.<\/p>\n<p>Roame shared several key points and predictions about the state of the insurance market, including:<\/p>\n<ul>\n<li><span><strong>Long-term care insurance prospects dim.&nbsp;<\/strong>Long-term care insurance is \u201cin a decline now as many of the carriers have pulled out,\u201d Roame said. Carriers sold $479 billion worth of LTCi in 2019 premium, Tiburon reported, the lowest sales figures since 2010 and down from $600 billion in 2018.<\/span><\/li>\n<\/ul>\n<p>Still, 71% of respondents at the Tiburon CEO Summit predicted &#8220;moderate growth&#8221; of LTCi over the next five years. Roame isn&#8217;t as confident.<\/p>\n<p>\u201cThat may be wishful thinking,&#8221; he said. &#8220;I hope there\u2019s some growth in the long-term care industry, but there aren\u2019t a lot of players left in the space. There are some life insurance long-term care blended products that might get some traction.\u201d<\/p>\n<ul>\n<li><span><strong>Annuity assets under management remain<\/strong> in the $2 trillion range, Roame reported. But carriers reported $301 billion in 2019 premium, up 25% from 2017 sales ($241 billion). Variable sales are going down, Roame noted, while fixed and indexed annuities are selling very well.<\/span><\/li>\n<\/ul>\n<p>Thirty-seven percent of Tiburon CEO Summit attendees expect annuity sales to &#8220;stagnate&#8221; over the next five years, up from 2 percent last year. About 50% expect &#8220;moderate&#8221; growth, down from 82% last year.<\/p>\n<p>\u201cI think they\u2019re moderately pessimistic on annuities,&#8221; said Roame, adding that he would like to see the industry price the products better.<\/p>\n<ul>\n<li><span><strong>Life insurance premium dropped<\/strong> from $181 billion in 2018 to $161 billion in 2019, while net profits dropped from $37.9 billion to $33.5 billion.<\/span><\/li>\n<li><span><strong>Health insurance is booming.<\/strong> Health insurance premiums totaled $745 billion in 2019, another new high and up from $394 billion in 2010, the year the Affordable Care Act became law. Health care insurance net profits soared to $30 billion in 2019, up from a relatively minuscule $3.7 billion in 2015.<\/span><\/li>\n<\/ul>\n<p>One hundred percent of CEO Summit attendees say advisors will play a role in helping clients with health insurance over the next five years, up from 60% one year earlier.<\/p>\n<ul>\n<li><span><strong>More mergers and acquisitions.<\/strong> Roame predicted more M&amp;A activity last year and was wrong. Insurance deals fell from 87 to 60.<\/span><\/li>\n<\/ul>\n<p>\u201cI\u2019ll stick with my prediction that I think you\u2019re going to see a lot of insurance company consolidation,&#8221; he said.<\/p>\n<p><em>InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at&nbsp;<a href=\"https:\/\/insurancenewsnet.com\/cdn-cgi\/l\/email-protection#b7ddd8dfd999dfdedbc3d8d9f7ded9d9d1d2d2d3d5d6d4dc99d4d8da\"><span class=\"__cf_email__\" data-cfemail=\"4923262127672120253d2627092027272f2c2c2d2b282a22672a2624\">[email&nbsp;protected]<\/span><\/a>. Follow him on Twitter @INNJohnH.<\/em><\/p>\n<p><span><strong>\u00a9 Entire contents copyright 2020 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.<\/strong><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/insurancenewsnet.com\/innarticle\/insurance-will-grow-and-flow-through-different-channels-analyst?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=insurance-will-grow-and-flow-through-different-channels-analyst\">Read the original article at insurancenewsnet.com <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Insurance products remain solidly profitable, but big change is coming in who sells them and how they are sold, one leading industry analyst predicts. More fee-based products, new channels and growth in direct-to-consumer sales&#46;&#46;&#46;<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18571"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=18571"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/18571\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=18571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=18571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=18571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}