Universal Life Sales Take A 2Q Dive
LIFEWIRES
$300M
$200M
2Q Life Sales Down Life insurance sales dropped in every category in
$100M $0
the second quarter, according to Wink’s Sales & 1Q20 2Q20 Market Report. Fixed universal life saw the biggest percentage drop over the same period in 2019, with second-quarter sales of $147.5 million, down 39.6% when compared with the previous quarter, and down 52.4% as compared to the same period last year. “The decline in fixed interest rates, which has plagued the life insurance industry for more than a decade, continues to drive traditional UL sales downward,” said Sheryl J. Moore, CEO of Wink Inc. Nonvariable universal life sales for the second quarter were $642 million, down 16.6% when compared with the previous quarter and down 27.5% as compared with second quarter 2019. Indexed life sales were $494.9 million, down 6% when compared with the previous quarter, and down 14.3% as compared with the same period last year. Whole life second-quarter sales were $930 million, down 10.4% when compared with the previous quarter and down more than 21% as compared with the same period last year.
ADVISORS MISS THE FACE-TO-FACE
Not being able to meet in person with their clients during the pandemic ranks as the biggest impact for nine in 10 advisors, according to a recent study. Market factors, including low interest rates and increased market volatility, have also been disruptive to advisors’ practices. The study, COVID-19 Social Distance and Distribution: Advisor Survey Summary of Results, was conducted by LIMRA, the Insured Retirement Institute, Oliver Wyman, and the National Association of Insurance and Financial Advisors. As the pandemic spread and social distancing measures were implemented, seven in 10 advisors increased their communications with their clients. They said their clients’ top two concerns were stock market volatility (74%) and low interest rates (45%). Other things on clients’ minds include job and income security, current and future income Most advisors are selling to existing clients
24%
17% 5%
54%
DID YOU
KNOW
?
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All sales have been to existing clients Higher proportion of sales to existing clients compared to business as usual Higher proportion of sales to new clients compared to business as usual All sales have been to new clients
stability, and life insurance coverage issues — including whether their policies will cover COVID-19.
QUOTABLE It is not surprising that social distancing measures have impeded advisors’ ability to gain new clients. — Scott Campion, partner, Oliver Wyman.
millions of dollars in bribes to the North Carolina Insurance Commissioner. On March 5, following an approximately three-week trial, a federal jury convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds.
TRANSAMERICA OFFERS FUNERAL PLANNING BENEFIT
INSURANCE MAGNATE SENTENCED TO 87 MONTHS IN PRISON
A bribery scheme involving independent expenditure accounts and improper campaign contributions landed insurance magnate and billionaire Greg Lindberg an 87-month prison sentence. Lindberg, 50, of Durham, N.C., the founder and chairman of Eli Global and the owner of Global Bankers Insurance Group, was sentenced to 87 months in prison and three years of supervised release. Lindberg has told media outlets that he will appeal. Lindberg’s consultant, John D. Gray, 70, of Chapel Hill, N.C., was ordered to serve 30 months in prison, followed by two years of supervised release. Lindberg and Gray were charged with offering
Although about 13% of the U.S. population is Black, only about 5% of the advisor population is. Source:The National Association of Insurance and Financial Advisors Source: Wall Street Journal
InsuranceNewsNet Magazine » October 2020
Transamerica is offering a service to help families through one of their most difficult times. The carrier is now offering a new funeral concierge benefit at no direct cost for qualifying life insurance policyholders. The Concierge Planning Rider provides grieving beneficiaries with resources to help plan the insured person’s funeral. This new benefit provides access to a third-party service provider, Everest Funeral Package. Services include 24/7 access to a consultant who assists with planning the funeral and negotiating funeral expenses, as well as online tools for creating a will and other estate planning documents and an online secure location for storage of these documents. The rider is available at no direct cost to policyholders for qualifying Financial Foundation IUL.