Table of Contents
Scope and Themes
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- What you need to know
- Consumer survey data
- Online surveys
- Greenfield Online
- Experian Simmons National Consumer Studies
- Advertising and promotions
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Industry overview
- The life insurance business lost ground in 2008
- Advertising emphasizes strength
- DWP declined 7.2% from 2007, the peak year for DWP
- Leading life insurance companies are AIG and MetLife
- Consumers and life insurance
Insights and Opportunities
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- Key points
- Baby Boomers will present several challenges to the industry in the years ahead
- Gen X may gravitate less to life insurance products due to current economic conditions
- Gen Y may provide a ray of sunshine to the life insurance industry
Inspire Insights
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- Trend: Trust in Me
- Trend: Living Better, Longer
Market Size and Forecast
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- Key points
- Life insurance accounts for 25% of all DWP
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- Figure 1: Life/health insurance industry direct written premium, by line, 2008
- Life insurance DWP is down 7.7% from its 2007 high
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- Figure 2: Total U.S. life insurance direct written premium, at current prices, 2003-08
- Figure 3: Total U.S. life insurance direct written premium, at 2008 inflation-adjusted prices, 2003-08
- Annuities grew moderately in 2008, up 6% over 2007
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- Figure 4: Total U.S. annuities direct written premium, at current prices, 2003-08
- Figure 5: Total U.S. annuities direct written premium, at 2008 inflation-adjusted prices, 2003-08
- More than $3 trillion in life insurance sold in 2007
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- Figure 6: Total U.S. life insurance purchases, 2006 and 2007
Competitive Context
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- Key points
- Lincoln and Hartford accepted bailout money
- AIG (American International Group)
- AIG—One year later
- M&A virtually non-existent during 2008 and 2009
Segment Performance
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- Key points
- Group life seriously declines, individual life and credit life show modest losses
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- Figure 7: U.S. direct written premium of life/health insurers, by segment, 2006-08
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- Figure 8: U.S. direct written premium of life insurance and annuities, at current prices, by segment, 2003-08
- Figure 9: U.S. direct written premium of life insurance and annuities, at inflation-adjusted prices, by segment, 2003-08
- In 2007, fewer life policies purchased, but the total face amount of policies climbed
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- Figure 10: Total U.S. life insurance purchases, by segment, 2003-07
Marketing Channels
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- Key points
- Nearly all life insurance is sold through agents
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- Figure 11: U.S. individual life market share, by channel, based on first year collected premium, 1999-2008
- About 40% search online for life insurance, but only 3% buy it this way
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- Figure 12: Online personal insurance sales, 2007
- The bank/investment firm channels appeal more to Asians and very high earners
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- Figure 13: How obtained life insurance, by age, August 2009
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- Figure 14: How obtained life insurance, by income, August 2009
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- Figure 15: How obtained life insurance, by race/Hispanic origin, August 2009
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- Figure 16: How obtained life insurance, by employment status, August 2009
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- Figure 17: Preference for communicating with insurance company, by gender and generation, August 2009
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- Figure 18: Preference for insurance agent to communicate with respondent, by gender and generation, August 2009
Market Drivers
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- Key points
- No population growth in the 35-54 age categories
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- Figure 19: U.S. population growth, by age, 2002-12
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- Figure 20: U.S. population and projections for life insurance, by age, 2007-12
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- Figure 21: Total non-farm payroll losses in thousands, by month, September 2007-September 2009
- Figure 22: U.S. unemployment rate, by month, September 2007-September 2009
- Figure 23: Average hours worked on private (non-farm) payrolls, 2005-September 2009
Leading Companies
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- Key points
- Seven of the top 10 life insurers saw declines in DWP in 2008
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- Figure 24: Top 10 writers of life insurance, by direct premiums written, 2007 and 2008
- Annuities
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- Figure 25: Top 10 writers of annuities, by direct premiums written, 2008
- Term life policies
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- Figure 26: Top 10 life insurance groups, by number of individual term life insurance policies issued, 2007
- Whole life policies
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- Figure 27: Top 10 life insurance groups, by number of individual whole life and endowment insurance policies issued, 2007
Brand Qualities
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- Key points
- Value, reliability and trustworthiness
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- Figure 28: Most important attributes of insurance companies, by gender and generation, August 2009
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- Figure 29: Three most important attributes of insurance company, by gender and generation, August 2009
- Consumers are not differentiating insurance companies
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- Figure 30: Attitudes towards life insurance companies, by age, May 2008
- Fortune rankings for most admired insurance companies
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- Figure 31: World’s most admired insurance companies: life and health companies, 2007 and 2008
Innovation and Innovators
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- Key points
- Prudential Financial’s MyTermsm
- Prudential Annuities launches www.retirementredzone.com
- MetLife introduces new Whole Life policy
- AXA Equitable Offers Enhanced Variable Universal Life Insurance Coverage
Advertising and Promotion
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- Key points
- Overview
- Print advertising
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- Figure 32: Prudential print ad, 2008/09
- Figure 33: New York Life print ad, 2008/09
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- Figure 34: Lincoln Financial print ad, 2009
- Figure 35: Guardian Life print ad, 2009
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- Figure 36: Genworth Life Insurance and AccuQuote print ad, 2009
- Direct mail
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- Figure 37: Hartford Life Information Survey, 2009
- Figure 38: Gerber’s “Grow Up Plan” direct mail, 2008/09
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- Figure 39: Prudential Insurance direct mail, 2009
- Email advertising
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- Figure 40: Prudential Insurance email ad, 2009
- Figure 41: MetLife Insurance email ad, 2009
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- Figure 42: AIG Direct: American General Life Insurance Company email ad, July 2009
- Figure 43: AccuQuote and Genworth Insurance email ad, 2009
- TV advertising
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- Figure 44: AARP/New York Life, man who makes hats, 2009
- Figure 45: Farmers Insurance Group Life Insurance, true story about young man, 2009
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- Figure 46: Gerber Grow-Up Plan, new fathers in maternity ward, 2009
- Figure 47: HSBC Life Insurance, “un” is in, 2009
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- Figure 48: New York Life, dadda to pops, 2008
- Figure 49: Pacific Life, Whaling, 2009
The Consumer and Life Insurance Ownership
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- Key points
- Type of insurance products owned
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- Figure 50: Types of insurance owned, by age, August 2009
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- Figure 51: Types of insurance owned, by income, August 2009
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- Figure 52: Types of insurance owned, by race/Hispanic origin, August 2009
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- Figure 53: Types of insurance owned, by marital status, August 2009
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- Figure 54: Types of insurance owned, by employment status, August 2009
- Types of life insurance owned
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- Figure 55: Types of life insurance owned, by age, August 2009
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- Figure 56: Types of life insurance owned, by income, August 2009
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- Figure 57: Types of life insurance owned, by race/Hispanic origin, August 2009
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- Figure 58: Types of life insurance owned, by marital status, August 2009
- Brand of life insurance owned
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- Figure 59: Brand of life insurance owned, by age, August 2009
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- Figure 60: Brand of life insurance owned, by income, August 2009
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- Figure 61: Brand of life insurance owned, by race/Hispanic origin, August 2009
- Reasons why life insurance is owned
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- Figure 62: Reasons why choose type of life insurance owned, by age, August 2009
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- Figure 63: Reasons why choose type of life insurance owned, by income, August 2009
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- Figure 64: Reasons why choose type of life insurance owned, by race/Hispanic origin, August 2009
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- Figure 65: Reasons why choose type of life insurance owned, by marital status, August 2009
- Face value of life insurance owned
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- Figure 66: Value of life insurance owned, by gender, February 2008-March 2009
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- Figure 67: Value of life insurance owned, by age, February 2008-March 2009
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- Figure 68: Value of life insurance owned, by race/Hispanic origin, February 2008-March 2009
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- Figure 69: Value of life insurance owned, by income, February 2008-March 2009
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- Figure 70: Value of life insurance owned, by marital status, February 2008-March 2009
- Knowledge about different aspects of life insurance
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- Figure 71: Awareness of different features of life insurance, by age, August 2009
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- Figure 72: Awareness of different features of life insurance, by income, August 2009
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- Figure 73: Awareness of different features of life insurance, by race/Hispanic origin, August 2009
- Recent changes to life insurance policies
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- Figure 74: Made recent changes to life insurance policy, by age, August 2009
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- Figure 75: Made recent changes to life insurance policy, by income, August 2009
The Consumer and Current Attitudes About Insurance
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- Key points
- Priority given to different insurance products in the household
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- Figure 76: Importance of different types of insurance, by gender and generation, August 2009
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- Figure 77: Importance of term life insurance, by gender and generation, August 2009
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- Figure 78: Importance of whole/universal/permanent life insurance, by gender and generation, August 2009
- Reasons for not having life insurance
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- Figure 79: Reasons why do not currently have life insurance, by age, August 2009
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- Figure 80: Reasons why do not currently have life insurance, by income, August 2009
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- Figure 81: Reasons why do not currently have life insurance, by race/Hispanic origin, August 2009
- Consumers’ views about the current economy
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- Figure 82: Views about the economy, by generation and age, May 2009
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- Figure 83: Views about the economy, by income, May 2009
Cluster Analysis
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- Groupers
- Wonderers
- Discerners
- Cluster characteristics
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- Figure 84: Life insurance clusters, August 2009
- Figure 85: Types of insurance owned, by life insurance clusters, August 2009
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- Figure 86: Types of life insurance owned, by life insurance clusters, August 2009
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- Figure 87: Reasons why choose type of life insurance owned, by life insurance clusters, August 2009
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- Figure 88: How obtained life insurance, by life insurance clusters, August 2009
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- Figure 89: Awareness about aspects of life insurance, by life insurance clusters, August 2009
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- Figure 90: Whether made recent changes to life insurance policy, by life insurance clusters, August 2009
- Cluster demographics
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- Figure 91: Life insurance clusters, by gender, August 2009
- Figure 92: Life insurance clusters, by age, August 2009
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- Figure 93: Life insurance clusters, by income, August 2009
- Figure 94: Life insurance clusters, by Hispanic origin, August 2009
- Cluster methodology
Appendix: Simmons Mosaic Analysis
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- Figure 95: Own life insurance, by Mosaic group, February 2008-March 2009
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- Figure 96: Value of life insurance, by Mosaic group, February 2008-March 2009
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Appendix: Other Useful Consumer Tables
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- Figure 97: Value of whole/universal/variable (face value) life insurance, by leading insurance providers, February 2008-March 2009
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- Figure 98: Value of whole/universal/variable (face value) life insurance, by leading insurance providers, February 2008-March 2009
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- Figure 99: Value of term life insurance, by leading insurance providers, February 2008-March 2009
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- Figure 100: Value of term life insurance, by leading insurance providers, February 2008-March 2009
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- Figure 101: Life/health insurance industry direct written premium, by line, 2003-08
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Appendix: Trade Associations
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