Seniors may be missing out on $112 billion in life insurance settlements

Elderly selling their life insurance to get pay out

Life settlements are being forfeited every year United States residents over the age of 65 are losing out on a collective $112 billion in life insurance settlements every year, according to a new report from the Life Insurance Settlement Association. The report notes that consumers are losing out on life insurance benefits because of lapsed coverage or because they choose to surrender their coverage. The organization suggests that the potential size of the life settlement market in the United States is “simply astounding.” Report shows that a typical life insurance…

Read More

Life insurance assets from Swiss Re in U.S. may soon be for sale

life insurance news

The company has announced that it is considering a retreat from the market in the United States. Sources familiar with Swiss Re Ltd. have revealed that it is thinking about putting its Aurora National Life Assurance Co. up for sale as it is drawing back from the American health and life insurance marketplace. This second largest reinsurer in the world is now taking efforts to seek out buyers for the assets. Swiss Re is working alongside Barclays PLC in order to be able to locate buyers for Aurora National as…

Read More

Life insurance industry seeks to dissuade tax reform

Life insurance

Life insurance representatives flock to DC to defend tax incentives Insurance executives and advisers, many of whom are represented by the National Association of Insurance and Financial Advisers, are flocking to Washington D.C. this week in order to warn federal lawmakers not to make changes to the preferential tax incentives that are offered to the life insurance industry. The life insurance sector in the U.S. has received these tax incentives, in one form or another, for the better part of a century, but financial concerns and the problematic performance of the…

Read More

Life insurance is vastly misunderstood among American consumers

life insurance test

LIMRA has reported that 70 percent of people in the U.S. don’t understand the coverage. In the United States, ownership of life insurance has reached a historical low and a recent LIMRA study has suggested that it is likely because Americans don’t understand why it is needed or how the products in that sector actually work. The global consulting and research organization determined that there is a lack of understanding and knowledge. In order to come up with this claim, LIMRA applied a type of IQ test for life insurance…

Read More

Life insurance unit in U.S. sold by Sun Life Financial

life insurance business sold

The sale of this and its American annuity business was made for a reported $1.35 billion. Sun Life Financial has just announced that it has come to an agreement with Delaware Life Holdings to sell its U.S. annuity unit as well as some of its life insurance businesses for a reported $1.35 billion. The buyer is a company that is owned by the Guggenheim Partners group of shareholders. According to president and chief executive officer of the seller, Dean Connor, “This transaction represents a transformational change for Sun Life.” Connor’s…

Read More

Life insurance reserves calculations change approved by regulators

insurance news

State authorities have moved forward a new and controversial standard for insurers in the sector. Life insurance news has been made by state regulators that have now given their approval for a new standard for the way that insurers in the sector will perform their reserves calculations, despite the heavy controversy and claims that it will not work. Critics say that the economy will face too much of a risk in larger states, and the implementation will be too expensive. The approval was made by the National Association of Insurance…

Read More

New life insurance rules may have dramatic impact on industry

New York Homeowners Insurance Rules

Top regulator warns of potential impact of new life insurance rules The New York Department of Financial Services has issued concerns regarding emerging rules that may affect the nation’s life insurance industry. Benjamin Lawsky, Superintendent of the agency, released a five-page letter to state insurance commissioners throughout the U.S. warning them that new rules for the life insurance sector could severely impact claims reserves and lead to insolvencies. These rules are summed up in “principles-based reserving,” a concept that has already become somewhat popular amongst states with flagging life insurance…

Read More

Life insurance industry may be in for a rough future

life insurance awareness in Iraq

Life insurance industry must adapt to change or it will fail The life insurance industry is facing a changing landscape, new risks, and emerging trends that could have a drastic effect on business. A new report from PwC US, an industry-focused consulting firm, suggests that life insurance companies will need to adapt to these changes if they wish to survive the next decade. The report, titled “Life Insurance 2020: Competing for the Future,” highlights several of the emerging factors that could have major influence over the life insurance industry. Report…

Read More

MIB Life Index shows 4.2 percent increase in American life insurance activity this year

Life insurance market seeing a growth spurt. According to the data from the MIB Life Index, the American application activity, all ages combined, for the first quarter of 2012 in individually underwritten life insurance saw a 0.3 percent year-over-year increase. Though April has been seeing a slow decrease in this activity, the first quarter as a whole saw a year-over-year rise by 4.2 percent. This is the best improvement that the industry has seen since 2007. In February, the application activity was 4.5 percent higher than it was in March.…

Read More