The British (Insurtechs) are coming.

A year-old unique partnership program to foster the entry of British insurtechs to the U.S. market recently signed up six new entrants to add to the already more than a dozen companies that have joined the program since 2022.

The Transatlantic InsurTech Corridor, a U.S.-U.K. collaboration, allows U.K. insurtechs to prepare for entry into the U.S. market, test their proof of concepts and products, and connect into the U.S. insurance network. Last month the program also opened to U.S. insurtechs hoping to investigate entering the U.K. insurance market.

UK, Conn. agencies, trade associations collaborate

The program is the brainchild of the U.K.’s Government’s Department of Business and Trade and several government agencies and trade associations in Connecticut, the U.S. insurance capital. These include the Connecticut Insurance and Financial Services Trade Association, the state’s Department of Insurance, the MetroHartford Alliance, and Connecticut’s lead economic development agency, DECD. They provide support, industry connections, and market insights to insurtechs at no cost.

Connecticut Insurance and Financial Services “is an economic development organization tied to advancing and strengthening the IFS industry in Connecticut,” said Susan Winkler, vice president and executive director of the organization. “We support U.S. and foreign businesses looking to establish a presence here – and those technologies that they may bring – all with goal of adding economic strength to the economy and value to insurers.”

“Insurers are seeking to serve their customers with best-in-class sustainable practices, protections and overall healthier lives – all built around the digitalization of insurance,” said Winkler. “The Corridor companies own some of these technologies, have strategically decided to expand to the U.S., and want to be close to their customer base – the Insurance Capital of the U.S. We help them get there faster and more efficiently.”

Latest UK insurtechs to join the Corridor program

The latest group of U.K. participants to join the InsurTech Corridor program include global insurance and reinsurance media technology platform Slipcase; specialist cycle and triathlon insurance provider Bikmo, and Supercede, a reinsurance platform for cedents, brokers and underwriters that is recognized for reinsurance by Lloyd’s of London.

Also included in the latest intake are Sønr, an insurtech scouting and open innovation platform used by insurance companies to facilitate innovation; Flare, whose incident detection app is used by brands such as Deliveroo and JustEat to ensure employee and customer safety; and Evari, an integrated platform for insurers.

“With the majority of our audience now based in the U.S., we have major ambitions for revenue growth in the region,” said Slipcase founder and CEO Alex Hearn “Being part of the InsurTech Corridor program enables us to ensure we capitalize on U.S.-based opportunities.”

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at doug.bailey@innfeedback.com.

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Global Atlantic Financial Group will stop selling new fixed indexed universal life policies, effective July 1.

Employees were informed of the decision in a message last week from Rob Arena, co-president and head of individual markets. Officially, Global Atlantic is suspending sales of IUL, Arena said.

“During the last several years, sales of our indexed universal life insurance products have been steadily declining, from 16% of total Individual Markets’ new business production in 2013 to less than 3% today,” Arena wrote. “During that same time, we have continued to drive growth in our annuity and preneed platforms. The decision to focus on these opportunities is the right one for our business today.”

The decision will affect the employee count at Global Atlantic. Asked for further clarification, the company sent InsuranceNewsNet this statement:

“This decision has unfortunately resulted in a small staff reduction focused on life insurance new business roles. We are working closely with these employees to assist them in their transition to new career opportunities, both within and outside Global Atlantic.”

Global Atlantic’s fixed IUL sales dropped sharply in the first quarter, said Sheryl Moore, CEO of Moore Market Intelligence and Wink, Inc.

“Frequent feedback from the field left me feeling unsurprised about their exit of the indexed life market,” she added. “The word on the street is that they plan to re-enter the indexed life market in 2025, but I would be surprised if they execute on that.”

Most private equity owned life insurers like to focus on fixed types of annuities, Moore explained.

The decision to exit the fixed IUL market does not impact existing policyholders, Arena assured staff. “We will continue to service those policyholders and deliver on our commitments,” he wrote.

Annuity focus

“Two years ago, we began a journey to deliver a more modern, digital and consistent client experience, investing first in our annuity and preneed products,” Arena wrote. “This is a significant investment and we have already begun to see material benefits.”

Global Atlantic ranked 10th in total annuity sales during the first quarter with $3.2 billion, according to LIMRA. That is up from $1.95 billion in annuity sales during the year-ago quarter.

Private equity firm KKR & Co Inc. agreed to buy Global Atlantic in a deal that closed in 2021. The transaction was valued at about $4.4 billion. KKR earnings fell in the first quarter, although the firm still beat analysts’ estimates.

Insurers such as American International Group and MetLife have shed their life insurance and annuity units in recent years. Profits are harder to come by due to historically low interest rates, economic turmoil and regulatory pressures.

Wink, Inc. reported last week that life insurance sales were down “across the board” during the first quarter.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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For financial advisors, understanding Gen Z and millennial investors – and their generational preferences – is crucial to creating connections, relationships and expanding their client base. We asked financial services professionals what strategies and approaches they have developed to connect with these generations and develop clients.

Linda Chavez

When asked if she employs different methods of attracting clients depending on their generation, Linda Chavez, founder & CEO of Los Angeles-based Seniors Life Insurance Finder responded, “Absolutely! We tailor our approach to each age group.”

“For example, with Gen Z investors, we are likely to focus more on digital solutions and take a more hands-on approach to engagement. We understand that Gen Z investors are used to having access to information instantly and at their fingertips, so our financial advisors provide them with tailored online advice and mobile apps that allow them to see their portfolios in real time.”

“For millennials,” Chavez said, “we tend to focus on providing long-term guidance and building a relationship with our clients. We understand that this age group is more interested in planning for their future and making sure their financial decisions are aligned with their life goals. Our advisors take the time to really get to know our millennial clients and discuss how they can use investing strategies to work towards their long-term objectives.”

Chavez detailed three strategies based on generation/age of client prospect:

1: Providing Tailored Solutions
Understand that each age group has different needs and preferences when it comes to investing. For example, Gen Z investors may be more comfortable with online solutions while millennials may prefer a more personalized approach.

2: Leveraging Technology
Leverage technology to provide tailored advice and solutions for each age group. For Gen Z investors, we focus on providing mobile apps that allow them to access their portfolios in real-time and understand the markets better. For millennials, we use more sophisticated tools to help them map out their future financial goals and track their progress over time.

3: Building Relationships
Building relationships with clients is essential for long-term success. We work to build trust and confidence in our services by taking the time to get to know each age group, understand their financial goals, and develop strategies that meet their individual needs. This helps us create strong relationships with our clients that last for years.

Working with ‘HENRYs’

Brandon Galici, a Certified Financial Planner professional and founder of Galici Financial, says he specializes in “working with HENRYs (High Earners, Not Rich Yet) who tend to be millennials and Gen Z.”

Brandon Galici

“I used to work more with pre-retirees, so I can certainly speak to the differences in the methods I use to attract a younger clientele,” said Galici. “Previously, it was a lot of phone calls and door-knocking to connect with the older demographic.”

Now, he says he uses three primary methods to reach millennials and Gen Z:

Technology
Social media
Free financial assessment

“Technology is a huge part of my practice. Every client receives access to the invitation-only Elements financial monitoring app. This is our hub where clients are able to be organized and see all of their finances in one place, straight from their phone. This certainly resonates more with the younger generations compared to the few older clients I serve.

“Content marketing on social media has also helped me connect with more millennials and Gen Z clients. I mostly create short-form video content to educate my audience on a financial planning topic. This allows the younger demographic to see how I think and communicate. Plus, I share a relevant #MemeMonday video to showcase my personality even more.

“Lastly, instead of forcing clients to have a phone call with me, I offer a free financial assessment,” said Galici. “A prospect fills out some basic information, and then I provide a 3-5 minute video of my analysis of their financial situation. Since many younger clients are uncomfortable talking on the phone about their money with a stranger, this has allowed them to engage me in a way that they prefer to communicate.”

‘Tailor-made strategies’ to resonate

Broker Jonathan Brown, who is also founder of the website MeetJB.com, says that understanding generational nuances is essential for client acquisition.

“Our strategies are tailor-made to resonate with the distinct traits of each generation. For Gen Z, we emphasize digital communication and engagement. We engage them via social media, leveraging interactive content, and employ the latest fintech tools to simplify complex financial concepts.”

The recent evolution of investments also drives strategy, explained Brown.

“With cryptocurrency and other digital assets becoming mainstream in 2023, we provide insights into these innovative investment avenues, appealing to Gen Z’s tech-savvy nature. Millennials, meanwhile, are more inclined towards sustainability and social responsibility. Therefore, we focus on ESG investing (Environmental, Social, and Governance), showcasing how their investments can make a difference.

“Moreover, being the first generation to face economic challenges like the Great Recession, they appreciate straightforward, honest communication. To connect with younger prospects, it’s all about being approachable, relevant, and empathetic to their unique circumstances. It’s a delicate dance of staying updated with financial trends while respecting their individuality and aspirations. After all, our success lies in empowering these individuals to achieve their financial goals, irrespective of their age.”

Dennis Shirshikov

Dennis Shirshikov, head of growth at Awning.com and who specializes in real estate, finance, and investing, says it’s important to tailor strategies to resonate with their specific preferences and needs. Here are five ways he says that strategies can differ based on the generation/age of client prospects:

Emphasize digital channels: Younger generations are more digitally savvy and spend a significant amount of time online. To connect with them, we prioritize our online presence and leverage digital marketing channels such as social media platforms, targeted online advertisements, and engaging content on our website and blog. We also optimize our website for mobile devices, as younger prospects often prefer browsing on their smartphones.

Personalized and interactive approach: Gen Z and millennials appreciate personalized experiences. We strive to create interactive and engaging content that speaks directly to their interests and aspirations. For example, we might create informative videos, host webinars, or conduct live Q&A sessions on social media platforms to provide valuable insights and address their specific financial concerns.

Utilize social media influencers: Influencer marketing is particularly effective when targeting younger audiences. We collaborate with social media influencers who have a significant following among Gen Z and millennials. These influencers can promote our services, share success stories, and provide relatable and authentic experiences, helping us build trust and credibility with younger prospects.

Focus on financial education: Younger generations often prioritize financial literacy and seek guidance on various topics like budgeting, investing, and debt management. We develop educational content, including blog posts, e-books, and educational videos, to provide them with the information they need. By positioning ourselves as a trusted source of financial knowledge, we attract younger prospects who appreciate our commitment to their financial well-being.

Incorporate technology-driven solutions: Younger clients are more comfortable with technology and appreciate innovative solutions. We leverage financial technology tools, such as mobile apps for budgeting and investing, online portfolio management platforms, and automated financial planning services. By offering these convenient and tech-driven solutions, we cater to the preferences of younger prospects and provide them with a seamless and efficient experience.

‘Experiential marketing’

Julia Kelly

“One uncommon example of a strategy we use is experiential marketing,” explained Julia Kelly, managing partner of Rigits, which provides remote bookkeeping and accounting solution for business.

“This involves creating immersive experiences that allow prospects to engage with our brand on a more personal level. For instance, we may host events where young adults can meet our team, network with other professionals their age, and learn about the services we offer.

“By making these types of connections and giving them a positive experience with our brand early on, we increase the chances they will become long-term clients in the future,” she said.

Finally, Alexander Casas at Virginia-based Rock Steady Wealth, Inc., offers advice for the best social media platforms to be on. About 38% of Gen Zers spend 4 hours or more a day on social media, according to a recent survey.

“If you’re looking to attract Gen Z, creating mobile-optimized content well-suited for platforms like Instagram, Snapchat, and TikTok is essential,” Casas said, adding, “Video content is significant for this demographic, and partnering with popular influencers can go a long way in driving engagement and building brand awareness. Or creating an educational YouTube channel can help drive younger clients your way.

“For millennials, it’s essential to have a solid online presence across multiple platforms, including LinkedIn, Facebook, Twitter, and Instagram,” he said.

Tech-based solutions and personalization also play a role for millennial or Gen Z investors, said Casas.

“Providing value through tech-based solutions like robo-advisors and offering resources to help them better understand financial planning and investment is vital to building trust and establishing your brand as a go-to resource in this space,” he said.

“No matter which demographic you’re trying to reach, it’s important to remember that personalization is critical. By tailoring your approach to your target audience’s unique needs and preferences, you can create a more impactful and effective marketing strategy that resonates with them on a deeper level.”

John Forcucci is InsuranceNewsNet editor-in-chief. He has had a long career in daily and weekly journalism. Contact him at John.Forcucci@innfeedback.com. Follow him on Twitter @INNJohnF.

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Iowa is expected to enact legislation in the coming weeks that will open the state up for lucrative captive insurance business.

Gov. Kim Reynolds is expected to sign the bill into law, making Iowa the 36th U.S. jurisdiction (including the District of Columbia) to adopt a captive insurance statute. The race for captive insurance business picked up considerably in recent years.

Captive insurers are essentially a form of self-insurance whereby the insurer is owned wholly by the insured, as defined by the National Association of Insurance Commissioners. They are typically established to meet the unique risk-management needs of the owners or members. Additionally, they provide potentially significant tax advantages, which can prove integral to longevity and company profitability.

Attracting captive insurers yields revenue for states in the form of fees and premium taxes. For many years, Vermont and Delaware were virtually the lone states to court captive insurers, which traditionally domiciled in Bermuda or the Cayman Islands.

That has changed in the past decade.

Several states, from Tennessee to Arizona to South Carolina are touting their effectiveness at attracting captive insurance business. States such as North Carolina and Vermont recently passed updated captive laws to increase their attractiveness as a captive destination:

North Carolina’s new law includes a waiver of premium taxes for the year in which any captive insurer, whether onshore or offshore, moving its home base to the state, as well as a waiver of the next year’s premium taxes. Additionally, new law modifies the captive insurer audit exemption provision by granting the commissioner the authority to consider captive insurers’ requests for an exemption from an audit when the cost would pose a financial hardship.
Vermont’s made several updates to its captive insurance law, such as improving the confidentiality of company information and increasing funding for the Vermont Captive Insurance Division’s operations.

“Vermont is the gold standard when it comes to captive insurance regulation,” said Deputy Commissioner of Captive Insurance Sandy Bigglestone. “Captive owners have consistently communicated the need to operate in a jurisdiction with quality regulation because it adds value to their investment in managing their own risk and provides support for the captive operations of the organization.”

Iowa’s captive law

Iowa’s captive statute does not specify an effective date, but is expected to become effective July 1, “bolstering Iowa’s robust insurance industry with a modern, competitive statute,” writes Brian Thomas of the law firm Womble Bond Dickinson.

In addition to setting tax rates, the bill permits Insurance Commissioner Doug Ommen to suspend or revoke certificates to conduct business and creates a Captive Insurance Regulatory and Supervision Fund, for deposit of all revenue sources.

It authorizes the formation of pure, association, protected cell, special purpose and industrial insured captives, establishes regulatory reporting and examination requirements, and gives regulators the responsibility of administering the law and promulgating rules under it, Thomas explained.

The bill “is modern, well written and bears a strong resemblance to predecessor statutes from other jurisdictions,” he concluded.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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We have been hearing about the wonders that artificial intelligence may bring but we are only starting to understand the problems with using it. While many insurance professionals have started experimenting with AI, there are pitfalls to be wary of.

The tool can give instant answers but it’s the same problem of “garbage in, garbage out” that plagues the internet. Soon after the general public started experimenting with ChatGPT and Microsoft’s version of it, we all learned that AI can be wrong and sometimes downright goofy.

Sam Altman, chief executive of ChatGPT creator OpenAI recently called on Congress to create licensing and safety standards for AI systems. “We understand that people are anxious about how it can change the way we live. We are, too,” Altman told a Senate subcommittee hearing, “If this technology goes wrong, it can go quite wrong.”

Need for AI systems agency cited

He recommended a new agency be created “that licenses any effort above a certain scale of capabilities and could take that license away and ensure compliance with safety standards.”

Users have found that AI is not always reliable.

In the case of New York Times reporter Kevin Roose, Microsoft’s AI-powered Bing chatbot called itself Sydney, said it was in love with Roose and wanted him to leave his wife for the bot.

Monica Minkel found that out when she asked ChatGPT to write a blog post about the risks of using ChatGPT.

“I asked it to write a blog post and cite two sources, which it did,” Minkel said. “It was a very nice blog post and both the sources were not legitimate.”

Minkel followed the URL links to the sources but they were not live pages and she could not verify the information. Minkel, who is vice president and executive risk enterprise leader with the brokerage Holmes Murphy, said the problem is not just that the information is inaccurate, but that the user is liable for propagating that misinformation.

Attribution, copyrights, trademarks all at issue

“You have to be very cautious about attribution,” Minkel said, adding that the issues are even bigger than accuracy. “It may be copying or duplicating content that is copyrighted, trademarked or otherwise protected. You may find yourself plagiarizing information that you didn’t realize you were plagiarizing. And you may find yourself promoting information that is either inaccurate, erroneous or potentially severely biased.”

An article in Harvard Business Review headlined “Generative AI Has an Intellectual Property Problem” explored the issue.

“This process comes with legal risks, including intellectual property infringement,” according to the article. “For example, does copyright, patent, trademark infringement apply to AI creations? Is it clear who owns the content that generative AI platforms create for you, or your customers? Before businesses can embrace the benefits of generative AI, they need to understand the risks — and how to protect themselves.”

The risk is real to those who use the information, according to the authors, Gil Appel, Juliana Neelbauer and David A. Schweidel, who say that courts are applying existing laws to this new technology.

“All this uncertainty presents a slew of challenges for companies that use generative AI,” according to the article. “If a business user is aware that training data might include unlicensed works or that an AI can generate unauthorized derivative works not covered by fair use, a business could be on the hook for willful infringement, which can include damages up to $150,000 for each instance of knowing use. There’s also the risk of accidentally sharing confidential trade secrets or business information by inputting data into generative AI tools.”
That last point is an important one for Minkel, who said insurance and financial professionals should be careful of not just what they get out of content generative AI, but also what they put in.

AI ‘might absorb’ trade secrets

A client’s general counsel asked Minkel’s agency about their own information being misused.
“They were concerned about trade secrets and other confidential information that the company had and how AI might absorb that information and then utilize it in a way that was not authorized,” Minkel said.

But it is not just companies that need to protect their trade secrets, insurance and financial professionals also have sensitive information – their clients’ personal data.
Say an insurance agent turned to an AI search engine to get a quote for specific coverage for a particular client. That agent could just plug in the details about the coverage and person but no personal details – no problem with that, right? Wrong.

When that agent typed information into that chat box, they didn’t see the vast stores of data the AI is mining, enormous pools of data linked with other pools. With more information comes exponential power.

“One of the things that we’ve learned about data that we believe to be confidential is that little bits of data collected from lots of different sources can create attribution back to an individual,” Minkel said. “We may have little bits of data that we think don’t make you identifiable — your zip code, for example. But if you have my zip code, and you have three other pieces of data, it might be really easy to identify who you are interested in. So, we want to be thoughtful about how we use data in a way that is protective of confidentiality, whether that’s corporate data or personal data.”

Perhaps we should ask ChatGPT about the issue. Here is what the bot had to say about the liability of using its information.

“As an AI language model, ChatGPT is designed to generate responses based on the input it receives and the patterns it has learned from vast amounts of data. While ChatGPT strives to provide accurate information, it is not infallible and may generate responses that contain errors or inaccuracies,” ChatGPT said. “Ultimately, users are responsible for their own actions and decisions, and it is their responsibility to verify the accuracy of any information they use or act upon, whether obtained from ChatGPT or any other source. It is important for users to exercise critical thinking and not rely solely on the information provided by ChatGPT or any other AI system.”

Steven A. Morelli is a contributing editor for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers and magazines. He was also vice president of communications for an insurance agents’ association. Steve can be reached at stevenamorelli@gmail.com.

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‘Exceptional customer experience’

Communication is key for retaining clients

Increase communication in uncertain times

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Phillip Roy Wasserman’s legal troubles did not end with his May 15 conviction on nine fraud counts. The self-styled ‘Annuity King’ will be tried separately on tax evasion charges.

Wasserman requested that the tax charges be severed from the fraud charges, court documents say. The government claims Wasserman, 66, with Kenneth Rossman, lied and concealed information to convince elderly victim-investors to put their money into Wasserman’s life insurance venture called, “FastLife.”

The government claims the fraud totaled $6.3 million, money it seeks to collect from Wasserman. Prosecutors are also focused on tax evasion.

“The evidence also established that Wasserman took numerous affirmative steps to evade payment of more than $900,000 in taxes due and owed,” said U.S. Attorney Roger B. Handberg, representing the Middle District of Florida.

During a status conference Wednesday, Judge Charlene Edwards Honeywell estimated that the second trial will last two-to-three weeks. She also requested that Wasserman file a waiver of his right to a speedy trial by June 7.

Wasserman filed separate motions for acquittal and a new trial on his fraud conviction. The government has until the last week of June to file responses, court documents say. Finally, Wasserman’s sentencing hearing was pushed back from Aug. 17 to Sept. 6.

Wasserman was convicted on nine fraud charges. The three most serious – wire fraud, mail fraud and conspiracy to commit wire and mail fraud – all carry maximum sentences of 20 years.

In July 2021, Rossman accepted a plea deal. According to court documents, Rossman pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of “aiding and assisting the preparation and filing of fraud and false tax returns.” The two counts carry a maximum of eight years behind bars.

Rossman is scheduled to be sentenced July 12.

Spent clients’ money, says U.S. attorney

Wasserman spent “a significant amount of the victim-investors’ money” to finance a lavish lifestyle that included a luxury personal residence, a beach house on Casey Key, Tampa Bay Lightning season and playoff tickets, concerts and other shows, vehicles, jet skis, jewelry, personal celebrity entertainment, gambling, retail shopping, home improvements, personal insurance, and a host of other expenses for his personal benefit and the benefit of family members, the U.S. attorney’s news release said.

“Moreover, Wasserman urged one witness to lie to investigators, attempted to dissuade several victim-investors from cooperating with law enforcement, and requested that one victim-investor make a baseless complaint against an investigator,” the release said.

“In a further effort to thwart the investigation, Wasserman falsely and fraudulently represented that he had an audit from a highly regarded financial services firm that would show neither he nor FastLife had committed any wrongdoing. In fact, Wasserman had never even engaged the firm to perform an audit and never received any final work product of any kind from the firm.”

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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Life insurance sales suffered greatly from several disruptions in the first quarter, posting sales losses across the board, Wink, Inc. reported today.

Traditionally, life insurance sales struggle in the first quarter because of the ramped-up sales efforts to close out the previous year, noted Sheryl Moore, CEO of both Moore Market Intelligence and Wink. Still, it was a terrible quarter, she added.

Non-variable universal life sales for the first quarter were $727.2 million, down 15.3% compared to the previous quarter and down 1.3% compared to the same period last year. Non-variable universal life sales include both indexed UL and fixed UL product sales.

Unlike other investment products, rising interest rates is not helping life insurance.

“My take is that the life insurance products haven’t been able to take advantage of increased rates as much, just because they primarily use portfolio crediting, rather than new money,” Moore explained. “Second quarter will also be a challenge because of the adoption of AG49-B.”

As of May 1, the National Association of Insurance Commissioners’ Actuarial Guideline 49-B requires that index accounts cannot be illustrated above the benchmark index account and the maximum illustrated rate must include bonuses, according to Gregory Rohtstein, a Symetra assistant vice president who outlined the guideline during an NAIC webinar. The guideline also limits illustrated rates to a maximum of 145% of whatever an IUL portfolio is earning.

AG 49-B amends AG 49-A and in the latest NAIC attempt to rein in IUL illustrations, particularly around uncapped volatility-controlled indexes with a fixed bonus. AG 49-B is seen as a patch until the NAIC reopens illustration regulation.

Company highlights

Noteworthy highlights for total non-variable universal life sales in the first quarter included National Life Group retaining the No. 1 overall sales ranking for non-variable universal life sales, with a market share of 12.7%. Transamerica Life’s Transamerica Financial Foundation IUL was the No. 1 selling product for non-variable universal life sales, for all channels combined for the eighth consecutive quarter.

Courtesy of Wink, Inc.

Indexed life insurance sales for the first quarter were $632.6 million, down 15.9% compared with the previous quarter, and up 0.4% compared to the same period last year. Indexed life sales include both indexed UL and indexed whole life.

“Indexed life was the only product line not to experience a decline in sales, over this time last year” Moore said. “Sales for the next quarter will likely prove challenging, thanks to the implementation of AG49-B.”

Items of interest in the indexed life market included National Life Group retaining their No. 1 ranking in indexed life insurance sales, with a 14.5% market share, Transamerica, Nationwide, Pacific Life Companies, and Sammons Financial Companies rounded out the top five, respectively.

Transamerica Life’s Transamerica Financial Foundation IUL was the No. 1 selling indexed life insurance product, for all channels combined for the eighth consecutive quarter. The top primary pricing objective for sales this quarter was Cash Accumulation, capturing 80.3% of sales. The average indexed life target premium for the quarter was $12,266, a decline of more than 9% from the prior quarter.

Courtesy of Wink, Inc.

Fixed UL sales for the first quarter were $94.9 million, down 11.3% compared to the previous quarter and down 11.6% compared to the same period last year. Noteworthy highlights for fixed universal life included the top primary pricing objective of No-Lapse Guarantee capturing 50.4% of sales. The average UL target premium for the quarter was $4,690, a decline of nearly 14% from the prior quarter.

Courtesy of Wink, Inc.

Whole life first quarter sales were $1 billion, down 11.8% compared with the previous quarter, and down 4.7% compared to the same period last year. Items of interest in the whole life market included the top primary pricing objective of Final Expense capturing 58.7% of sales. The average premium per whole life policy for the quarter was $4,127, an increase of nearly 6% from the prior quarter.

Courtesy of Wink, Inc.

Wink currently reports on indexed universal life, indexed whole life, universal life, whole life, and all deferred annuity lines’ product sales. Sales reporting on additional product lines will follow in the future, Moore said.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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While many Americans happily celebrate the three-year anniversary of working from home, and despite persistent labor shortages, some property and casualty insurers are mandating a return to the office.

Farmers Insurance recently informed its employees that anyone located within 50 miles of a Farmers’ office is required to be in that office at least three days a week beginning in September.

Headquartered in Los Angeles, Farmers is a private company. The insurer writes more than 19 million individual insurance policies across all 50 states through nearly 48,000 exclusive and independent agents and approximately 21,000 employees, according to the Farmers’ LinkedIn profile.

The move back to the office will allow employees to work together again in person, said Luis Sahagun, director, external communications for Farmers.

“We believe this will drive greater collaboration, creativity and innovation while also providing better opportunities for learning, training, mentoring and career development,” he wrote in an emailed statement. “Over the course of the next few months, we’ll be finalizing details and working with our teams to make this transition smooth.”

Meanwhile, P&C insurers continue to battle fiercely for talent to fill positions such as underwriter, claims adjuster and agent. Lengthy employment ads can be found for these positions in nearly every urban area.

Working from home is proving to be an attractive and popular perk for employment seekers. Many workers value the flexibility, while others are happy to shed a stressful commute to the office.

Mary Schmid is a consultant who works with businesses on communication and leadership training. She authored the book, “Make or Break Conversations: How Smart Financial Professionals Land New Clients and Keep Them for Life.”

Schmid is not convinced that in-person collaboration should be a high priority.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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As consumers grapple with a wide range of financial challenges – including high inflation, stock market volatility, and recent bank foreclosures – three quarters of financial advisors surveyed said they have increased their level of engagement with clients, according to a recent study.

Most financial advisors are communicating with clients monthly (44%) or even weekly (42%) followed by several times a month (10%) and quarterly (4%), according to new research from the financial-services firm, Edward Jones.

In-person meetings lead client engagement

Also, there has been an increase in the number of in-person meetings. In fact, in-person meetings are back as the most common method through which financial advisors communicate with their clients.

As they prepared to navigate financial hardship, the respondents’ clients relied the most on:

Life insurance (64%)
Cash/emergency savings (58%)
Retirement savings (43%)

Consequently, the survey pointed out, 69% of financial advisors are confident that their clients’ emergency savings fund will last for three months or longer.

The study really demonstrates the value of working with a financial advisor, said Jesse Abercrombie, an Edward Jones advisor in Plano, Texas. Almost nine in 10 financial advisors (88%) believe that most of their clients feel financially resilient. This means that they can withstand or recover quickly from difficult financial conditions.

“In fact,” Abercrombie noted, “one third (32%) report that all their clients feel financially resilient.”

Groups most vulnerable

Perhaps not surprisingly, the financial advisors who participated in the study reported that millennials (43%) are the generation that is the most vulnerable to financial hardship. They are followed by Gen Z (36%), Gen X (17%) and baby boomers (4%).

Surprisingly, financial advisors reported that individuals who have a household income of $101K-$200K per year are twice as vulnerable to financial hardship as those with household income of under $50K (20%), or those with $51-100K (20%).

Millennials are typically in the peak earning years of their career and tend to experience major life changes, such as pursuing advanced education, getting married, purchasing a home, and having kids, Abercrombie explained. These major life milestones present an opportunity for financial advisors to help individuals create a financial plan that will allow them to achieve these goals.

Increasing client communication

Nothing can replace the value of human interaction, Abercrombie said, as he shared a few methods that financial advisors can use to increase the level of communication and client engagement.

“Having a face-to-face interaction with a client, seeing their body language, and laughing together, build deeper, more personalized relationships and allow advisors to better understand their values,” he said.

The study, Abercrombie said, showed that financial advisors recognize the value of in-person meetings as they are now the most common way for them to communicate with clients (38%), followed by email (24%), phone calls (23%) and virtual meetings (16%).

During times of market volatility, financial advisors can help clients stay accountable and ensure that clients are making decisions that support their long-term goals.
“Technology offers the ability to have these more frequent touchpoints by leveraging virtual meetings, email and text,” he said.

It’s also critical to ask clients in discovery meetings how often they’d like to meet.

“Some want to meet a few times per year, some quarterly, and some more often. If clients have a specific need related to their goals, such as creating an estate plan, it may make sense to meet more frequently,” he added.

The Edward Jones client engagement survey was conducted by global data intelligence company Morning Consult among a national sample of 200 financial advisors from March 24-31, 2023.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at amseka@INNfeedback.com. 

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