Insurance Newsletter Issue 12 – Life Insurance Insights: Rising US Uninsured Rates, Interest Rates Affecting Life Insurance Demand, Life Insurance Market Struggles, and More
Insurance Newsletter – Issue 12
In the June edition of Sikka’s life underwriting newsletter, we look at rising US uninsured rates, how current interest rates are affecting life insurance demand, the current slump in the life insurance direct-to-consumer markets, and John Hancock’s newest longevity product.
Rate of US Uninsured to Rise to 8.9% in the Next Decade, Congressional Budget Office Says
The rate of Americans who are uninsured will rise to 8.9% over the next decade from 7.7% in 2024, driven by rising immigration and reduced eligibility for 19-to-24 year-olds following federal government policy changes, according to a Congressional Budget Office report released on Tuesday. "We expect the uninsured rate for the immigrants arriving in the surge to be roughly four times the rate for the overall population," said Jessica Hale, an analyst at the Congressional Budget Office, Congress' non-partisan budget agency.
Released June 18th, 2024:
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“Higher for Longer” Interest Rate Environment is Boosting Life Insurance Demand, Swiss Re Institute
Swiss Re Institute is forecasting a 40% rise in insurers’ investment income on average, for insurers in the largest eight life markets in the five years to 2027, driven primarily by higher bond yields. In a recent blog authored by James Finucane, Senior Economist, Swiss Re Institute & Loïc Lanci, Economist, Swiss Re Institute, the pair explain that today’s “higher for longer” interest rate environment is “boosting life insurance demand and new business sales, investment performance and profitability.”
Released June 17th, 2024:
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Despite High Expectations, Direct-to-Consumer Life Insurance Market Struggles
A decade ago, direct-to-consumer platforms were the next big thing in life insurance. With sound reasoning. Study after study continues to show that Americans like self-directed shopping experiences made easy. Start-ups with breezy names such as Ethos and Lemonade and Ladder found seed money with ease and promised to make life insurance “affordable, accessible, and straightforward,” as an Ethos’ marketing line describes it. Fast forward to 2024 and direct-to-consumer sales are flat, at best, and nowhere near expectations. And many of those start-up companies are either gone or struggling to survive.
Released June 5th, 2024:
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John Hancock Expands its Longevity Arsenal
In its continuing effort to encourage proactive healthcare and promote longevity, John Hancock said it is the first insurer in the U.S. to offer discounted access to advanced whole-body MRI scans as part of its healthy lifestyle program called Vitality. Hancock Vitality members will receive a $500 discount on comprehensive whole-body scans by Prenuvo, the San Francisco-based innovative health technology firm. The company said the initiative complements Hancock's previous investment in preventative healthcare technologies, such as offering access to GRAIL’s multi-cancer early detection test, Galleri.
Released June 18th, 2024:
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