Underwriting AI - Current Insights on Life Insurance Risk
Welcome to the eagerly awaited third issue of "Underwriting AI - Current Insights on Life Insurance Risk." In this installment, we dive deep into the ever-evolving world of life underwriting, bringing you engaging stories of transformative new partnerships, monumental international deals, and crucial updates in life insurance policy. As the industry continues to redefine itself, this newsletter remains your trusted source for staying informed and ahead of the curve. Join us on this exciting journey through the heart of the life underwriting sector.
US life insurers cut over $7 billion in notional foreign exchange forwards positions during the second quarter, largely in sterling/US dollar positions. A total of $47.5 billion in G10 FX forwards positions were reported by US life insurers, a 12.9% decline from the previous quarter among G10 currencies. Around $5.1 billion and $1.7 billion in notional volumes were cut in GBP/USD and euro/USD positions, respectively. Trading among non-G10s also declined by 65.6% to just $147 million.
While the U.S. has continuously held the largest share of the worldwide insurance market, the second-largest insurance market, Japan, also possesses massive assets. Both share aging populations. With the number of policies declining, there’s an ongoing shift from death benefits toward medical and wellness coverage as well as toward preventive health care and mental health.
There are two broad categories of life insurance, and data suggests many households aren’t buying the most cost-effective one. Americans bought 4.1 million term insurance policies in 2021, accounting for 40% of all individual policies purchased that year, according to the most recent data from the American Council of Life Insurers. About 6.3 million policies, or 60%, were permanent life insurance. But this doesn’t seem to jibe with financial advisors’ general recommendation.
Agam Capital, a trusted global platform for insurance analytics, and American Equity Life, a world-class provider of annuity and retirement products, are excited to announce their plans to launch the next-generation life insurance company in India. This innovative collaboration harnesses Fintech Blue’s tech-enabled distribution expertise in India, Agam's cutting-edge pALM analytical platform, and American Equity's strength in capital and retirement services. The result will be a truly distinctive entrant into India's thriving and rapidly growing market for life insurance and retirement products.
A big life insurance and annuity distributor is getting closer to a big, independent insurance marketing organization. Highland Capital Brokerage, the distributor, has formed an alliance with Libra Insurance Partners, the IMO, Libra announced recently. “Highland Capital Brokerage is a formidable organization, and we are excited they have selected Libra as their strategic partner,” Bill Shelow, Libra’s CEO, said in a comment about the new relationship. Libra is a Baltimore-based company that was formed by the 2019 combination of LifeMark Partners and Bramco Financial Resources.
Lawmakers in many states are still on summer vacation or have ended their regular sessions entirely. Lawmakers in California are back in Sacramento, holding hearings and votes. The California Legislature’s work has an obvious, direct effect on financial professionals and clients in California. It can also affect what happens in Washington, because Democrats, in particular, may see the state as a research and development lab for financial services legislation. For a look at 10 California bills that look as if they could have an impact on annuities or life insurance — or interesting effects on clients’ out-of-pocket health care costs — see the gallery.
This October 31st - November 2nd, seize the opportunity to connect with Lewis Goldman, Insurance Business Leader at Sikka.ai, at the upcoming Insuretech Connect Conference. Discover firsthand how our revolutionary oral health data is reshaping life insurance underwriting, offering you increased lift in detecting pre-existing conditions and providing easy access to a more complete risk profile. Don't miss this chance to explore the future of life insurance underwriting with us, schedule a meeting with Lewis Goldman at email@example.com to find out how Sikka’s oral health data is revolutionizing the life underwriting industry.