Industry Analysis & Industry Trends
Despite generally rising levels of life insurance and annuity premiums, volatile net investment income has damaged revenue for the Life Insurance and Annuities industry over the five years to 2014. However, rising interest rates and a growing distance from the financial crisis are anticipated to benefit the industry in the next five years. Given the industry's reliance on fixed-income securities for investment income, gradual increases in interest rates over the five-year period are anticipated to boost asset returns. Moreover, demographic trends witnessed in recent years are forecast to continue in the years ahead, particularly the aging of the domestic population... purchase to read more
Industry Report - Industry Products Chapter
Industry revenue can primarily be broken down into annuity considerations, life insurance premiums and investment income. Annuities protect their owners against the possibility of outliving their financial resources during retirement, while life insurance protects the policyholder's dependents from financial hardship in the event of death. In addition, the industry underwrites disability income insurance policies, which provide paycheck protection for workers who are unable to work due to accident or illness, and accidental death and dismemberment insurance policies.
In 2015, group annuities are anticipated to account for 40.9% of total industry revenue, while individual annuities are expected to represent 21.5% of revenue in the same year... purchase to read more