Table of Contents
Scope and Themes
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- What you need to know
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
- Generations
Executive Summary
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- The market
- Fewer policies being purchased
- Number of insurance companies is declining
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- Figure 1: Number of total life insurance companies in US, 1988-2012
- Market drivers
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- Figure 2: Year-over-year monthly percentage change in life insurance applications, by age, January 2014-June 2014
- Low interest rates
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- Figure 3: Treasury yields, Jan. 1, 2014-Aug. 11, 2014
- Leading companies
- The consumer
- More women need life insurance
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- Figure 4: Percentage who don’t have life insurance, by gender, June 2014
- Hispanics less likely than non-Hispanics to have life insurance
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- Figure 5: Percentage who don’t have life insurance, by Hispanic origin, June 2014
- Marriage is a major impetus
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- Figure 6: Percentage who don’t have life insurance, by marital and parental status, June 2014
- Millennials are willing customers, but need help
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- Figure 7: Attitude about insurance, by age, June 2014
- Most are interested in features that save money, not add coverage
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- Figure 8: Interest in features, June 2014
- Mobile access to accounts is most important
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- Figure 9: Mobile apps of most interest, by age, June 2014
- What we think
Issues and Insights
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- Life insurance is increasingly important for women
- Issues
- Implications
- The changing definition of “family” offers other emerging markets
- Issues
- Implications
- How can life insurance companies attract Millennials?
- Issues
- Implications
Trend Application
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- Inspire Trend: Who are the Joneses?
- Inspire Trend: Prove It
- Inspire Trend: Cam Cam
Market Size
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- Key points
- Total premiums show slight decline over the past year
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- Figure 10: US life insurance premiums, 2009-13
- Direct premiums written are down
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- Figure 11: Direct premiums written, life insurance, 2009-13
- Number of policies continues to fall
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- Figure 12: Number of policies purchased and in force, 2012 vs 2002 and 2011
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- Figure 13: Individual life insurance growth rates, by product, Q2 2013 vs Q2 2014
- Figure 14: US monthly percentage change in life insurance applications, January 2014-June 2014
Market Drivers
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- Key points
- The aging of America
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- Figure 15: US population projections, by age groups, 2015-55
- Figure 16: Year-over-year monthly percentage change in life insurance applications, by age, January 2014-June 2014
- Low interest rates
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- Figure 17: Treasury yields, Jan. 1, 2014-Aug. 11, 2014
- More single heads of household and unmarried couples
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- Figure 18: Households, by type, 2000, 2010
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- Figure 19: Percentage who don’t have life insurance, by marital status, June 2014
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- Figure 20: Percentage without life insurance, by marital and parental status, June 2014
- Breadwinner moms are on the increase
Competitive Context
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- Key points
- Increasing competition from alternate distribution channels
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- Figure 21: Percentage interested in buying life insurance from an alternate outlet, by generation, February 2014
- Fewer insurance companies
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- Figure 22: Number of total life insurance companies in US, 1988-2012
- Leading life insurance companies
- Largest by total assets
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- Figure 23: Top 10 life insurance companies, by total assets, as of December 31, 2012
- Largest by individual life insurance in force
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- Figure 24: Top 10 life insurance companies, by individual life insurance in force, as of December 31, 2012
- Largest by group life insurance in force
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- Figure 25: Top life insurance companies, by group life insurance in force, as of December 31, 2012
- Largest by total life insurance in force
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- Figure 26: Top 10 life insurance companies, by total life insurance in force, as of December 31, 2012
- Largest by total net life insurance premiums
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- Figure 27: Top 10 life insurance companies, by total net premiums, as of December 31, 2012
- MetLife
- Prudential
- Manulife Financial (John Hancock)
- AIG
- Northwestern Mutual
- New York Life
Innovations and Innovators
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- Key points
- MetLife’s new product makes life insurance easier to get
- MetLife changes its Walmart approach
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- Figure 28: MetLife kiosk at Walmart television ad, 2014
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- Figure 29: MetLife life insurance print ad, 2013
- Northwestern Mutual reaches out to young Millennials
Marketing Strategies
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- Key points
- Direct mail volume trending down
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- Figure 30: Estimated life insurance direct mail volume, January 2013-June 2014
- Mailing volume concentrated among top three mailers
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- Figure 31: Top direct mail insurers estimated mail volume, Q2 2013 vs Q2 2014
- Brand analysis: MetLife
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- Figure 32: Brand analysis of MetLife, 2014
- Figure 33: MetLife “Private Client Group” television ad, 2014
- Website
- Direct Mail
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- Figure 34: MetLife term application direct mail piece, 2014
- Figure 35: MetLife “Guaranteed Issue Whole Life” direct mail ad, 2014
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- Figure 36: MetLife “Simplified Issue Term Life” email ad, 2014
- Figure 37: MetLife “Be a hero” term life insurance email ad, 2014
- Online
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- Figure 38: MetLife “Final Expense” online ad, 2014
- TV
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- Figure 39: MetLife “National Anthem” television ad, 2014
- Figure 40: MetLife “Football Players National Anthem” television ad, 2014
- Video
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- Figure 41: MetLife term insurance video, 2013
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- Figure 42: MetLife feature story life insurance video, 2014
- Brand analysis: Prudential
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- Figure 43: Brand analysis of Prudential, 2014
- Website
- Direct mail
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- Figure 44: Prudential’s group insurance direct mail ad, 2014
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- Figure 45: Prudential term life email ad, 2014
- Figure 46: Prudential e-Pay email ad, 2013
- Television
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- Figure 47: Prudential “Day One” commercial, 2013
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- Figure 48: Prudential “Stickers” commercial, 2014
- Video
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- Figure 49: Prudential’s “Day Two” video, 2014
- Brand analysis: State Farm
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- Figure 50: Brand analysis of State Farm, 2014
- Website
- Direct mail
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- Figure 51: State Farm multiline discount direct mail ad, 2014
- Figure 52: State Farm “Sells Life Insurance” direct mail ad, 2014
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- Figure 53: State Farm “Handprint” print ad, 2013
- Online
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- Figure 54: State Farm “Get to a Better State” online ad, 2013
- Television
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- Figure 55: State Farm “Chris/Cliff Paul” television ad, 2014
- Figure 56: State Farm “Nike” television ad, 2013
- Video
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- Figure 57: State Farm’s “Learning about Life Insurance” video, 2014
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- Figure 58: State Farm “Experience” video, 2014
Social Media
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- Key points
- Market overview
- Key social media metrics
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- Figure 59: Key performance indicators, selected life insurance brands, Aug. 25, 2013-Aug. 24, 2014
- Brand usage and awareness
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- Figure 60: Brand usage and awareness of life insurance brands, June 2014
- Interaction with brands
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- Figure 61: Interaction with life insurance brands, June 2013
- Leading online campaigns
- Tackling consumer perceptions with social media
- Hashtags to drive conversation
- Sports partnerships
- Social media for social good
- What we think
- Online conversations
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- Figure 62: Online mentions, selected life insurance brands, Aug. 25, 2013-Aug. 24, 2014
- Where are people talking about life insurance brands?
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- Figure 63: Mentions, by page type, selected life insurance brands, Aug. 25, 2013-Aug. 24, 2014
- What are people talking about online?
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- Figure 64: Mentions, by topic of conversation, selected life insurance brands, Aug. 25, 2013-Aug. 24, 2014
Type of Life Insurance Owned
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- Key points
- Men more likely to have insurance than women
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- Figure 65: Type of life insurance owned, by gender, June 2014
- Ownership of whole life increases with age
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- Figure 66: Type of life insurance owned, by age, June 2014
- Income also is a driver
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- Figure 67: Type of life insurance owned, by household income, June 2014
- More Hispanics have no life insurance
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- Figure 68: Type of life insurance owned, by race/Hispanic origin, June 2014
- Singles don’t – But should – Have life insurance
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- Figure 69: Type of life insurance owned, by marital/relationship status, June 2014
- Marriage more important than kids in life insurance decision
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- Figure 70: Type of life insurance owned, by marital status and presence of children in household, June 2014
How Life Insurance is Purchased
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- Key points
- Most purchase directly from insurer
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- Figure 71: How policy(ies) were purchased, June 2014
- Purchased through own/partner’s employer
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- Figure 72: How policy(ies) were purchased, by gender, June 2014
- Purchased directly from insurer
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- Figure 73: How policy(ies) were purchased, by gender, June 2014
Amount of Insurance Owned
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- Key points
- Many people likely underinsured
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- Figure 74: Amount of life insurance owned, June 2014
- Women need more insurance
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- Figure 75: Amount of life insurance owned, by gender, June 2014
- Ownership changes at age 55
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- Figure 76: Amount of life insurance owned, by age, June 2014
- Household income drives insurance ownership
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- Figure 77: Amount of life insurance owned, by household income, June 2014
- Household income of $75K is sweet spot
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- Figure 78: Amount of life insurance owned, by age and household income, June 2014
- Age of children has no effect on amount of life insurance owned
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- Figure 79: Amount of life insurance owned, by parents with children in household, June 2014
Life Insurance Providers
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- Key points
- MetLife is the leader
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- Figure 80: Life insurance provider, June 2014
- Provided by own or partner’s employer
- State Farm leads among young Millennials
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- Figure 81: Life Insurance provider, provided by employer, by age, June 2014
- Many women not sure who provides their insurance
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- Figure 82: Life insurance provider, provided by employer, by gender and age, June 2014
- MetLife is most popular among those with highest amounts of employer-provided insurance
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- Figure 83: Life insurance provider, provided by employer, by amount of insurance owned, June 2014
- Purchased directly from insurer
- More competition when insurance is purchased directly
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- Figure 84: Life insurance provider, purchased independently. by gender, June 2014
- State Farm most popular among younger consumers
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- Figure 85: Life insurance provider, purchased independently, by age, June 2014
- MetLife is the leader among those with the most life insurance
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- Figure 86: Life insurance provider, purchased independently, by amount of life insurance owned, June 2014
Attitudes Toward Life Insurance and Insurance Companies
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- Key points
- Most believe life insurance is necessary
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- Figure 87: Attitudes toward life insurance, by gender, June 2014
- Young people offer opportunity – And challenge
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- Figure 88: Attitudes toward life insurance, by age, June 2014
- Male Millennials are a challenge
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- Figure 89: Attitudes toward life insurance, by gender and age, June 2014
- Hispanics may be cross-sell opportunity
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- Figure 90: Attitudes toward life insurance, by race/Hispanic origin, June 2014
- Trust is an issue for married parents
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- Figure 91: Attitudes toward life insurance, by marital status and presence of children in household, June 2014
Reasons for Purchasing Life Insurance
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- Key points
- Men have different reasons to purchase life insurance than do women
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- Figure 92: Reasons for purchasing life insurance, by gender, June 2014
- Reasons for buying life insurance change with age
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- Figure 93: Reasons for purchasing life insurance, by age, June 2014
- Higher household income increases use of life insurance as investment
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- Figure 94: Reasons for purchasing life insurance, by household income, June 2014
- Race makes a difference in why life insurance is purchased
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- Figure 95: Reasons for purchasing life insurance, by race/Hispanic origin, June 2014
- Married parents are “sweet spot”
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- Figure 96: Reasons for purchasing life insurance, by marital status and presence of children in household, June 2014
Features of Interest
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- Key points
- Mobile apps are not of much interest
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- Figure 97: Features of interest, by gender, June 2014
- Personal contact with representatives is important
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- Figure 98: Features of interest, by age, June 2014
- Interest in options is highest among married couples
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- Figure 99: Features of interest, by marital status and parents with children in household, June 2014
- Young parents more interested in features
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- Figure 100: Features of interest, by parents with children in household, June 2014
- Discounts may help increase incremental sales
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- Figure 101: Features of interest, by amount of life insurance owned, June 2014
Interest in Mobile Apps
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- Key points
- Men have more interest in mobile apps
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- Figure 102: Interest in mobile app usage, by gender, June 2014
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- Figure 103: Interest in mobile app usage, by age, June 2014
- More interest among those with higher household incomes
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- Figure 104: Interest in mobile app usage, by household income, June 2014
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- Figure 105: Interest in mobile app usage, by race/Hispanic origin, June 2014
- Income defines interest among Millennials
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- Figure 106: Interest in mobile app usage, by age and household income, June 2014
- Amount of insurance drives mobile app interest
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- Figure 107: Interest in mobile app usage, by amount of life insurance owned, June 2014
Appendix – Other Useful Consumer Tables
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- Life insurance ownership
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- Figure 108: Type of life insurance owned, by gender and age, June 2014
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- Figure 109: Type of life insurance owned, by age and household income, June 2014
- How life insurance is purchased
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- Figure 110: How policy(ies) were purchased, by generation, June 2014
- Amount of life insurance owned
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- Figure 111: Amount of life insurance owned, by gender and age, June 2014
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- Figure 112: Amount of life insurance owned – Nets, by gender, June 2014
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- Figure 113: Amount of life insurance owned – Nets, by age, June 2014
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- Figure 114: Amount of life insurance owned – Nets, by gender and age, June 2014
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- Figure 115: Amount of life insurance owned – Nets, by household income, June 2014
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- Figure 116: Amount of life insurance owned – Nets, by race/Hispanic origin, June 2014
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- Figure 117: Amount of life insurance owned – Nets, by marital status and presence of children in household, June 2014
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- Figure 118: Amount of life insurance owned – Nets, by parents with children in household, June 2014
- Life insurance providers
- Purchased through employer/partner’s employer
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- Figure 119: Life insurance provider, provided by employer, by gender, June 2014
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- Figure 120: Life insurance provider, provided by employer, by household income, June 2014
- Purchased directly from insurer
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- Figure 121: Life insurance provider, purchased independently, by gender and age, June 2014
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- Figure 122: Life insurance provider, purchased independently, by household income, June 2014
- Attitudes toward life insurance and life insurance companies
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- Figure 123: Attitudes toward life insurance, by household income, June 2014
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- Figure 124: Attitudes toward life insurance, by age and household income, June 2014
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- Figure 125: Attitudes toward life insurance, by parents with children in household, June 2014
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- Figure 126: Attitudes toward life insurance, by amount of life insurance owned, June 2014
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- Figure 127: Attitudes toward life insurance, by amount of life insurance owned, June 2014
- Reasons to purchase life insurance
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- Figure 128: Reasons for purchasing life insurance, by age and household income, June 2014
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- Figure 129: Reasons for purchasing life insurance, by parents with children in household, June 2014
- Features of interest
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- Figure 130: Features of interest, by household income, June 2014
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- Figure 131: Features of interest, by age and household income, June 2014
- Interest in mobile apps
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- Figure 132: Interest in mobile app usage, by gender and age, June 2014
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- Figure 133: Interest in mobile app usage, by amount of life insurance owned, June 2014
Appendix – Social Media
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- Figure 134: Key social media indicators of selected life insurance brands, August 2014
- Figure 135: Online mentions, selected car brands, Aug. 18, 2013-Aug. 17, 2014
- Brand usage or awareness
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- Figure 136: Brand usage or awareness, June 2014
- Figure 137: Northwestern Mutual usage or awareness, by demographics, June 2014
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- Figure 138: State Farm usage or awareness, by demographics, June 2014
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- Figure 139: Prudential usage or awareness, by demographics, June 2014
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- Figure 140: MetLife usage or awareness, by demographics, June 2014
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- Figure 141: AIG usage or awareness, by demographics, June 2014
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- Figure 142: New York Life usage or awareness, by demographics, June 2014
- Activities done
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- Figure 143: Activities done, June 2014
- Figure 144: Northwestern Mutual – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 145: State Farm – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 146: State Farm – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, June 2014
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- Figure 147: State Farm – Activities done – I have researched the brand on social media to…, by demographics, June 2014
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- Figure 148: Prudential – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 149: Prudential – Activities done – I have researched the brand on social media to…, by demographics, June 2014
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- Figure 150: MetLife – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 151: MetLife – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, June 2014
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- Figure 152: MetLife – Activities done – I have researched the brand on social media to…, by demographics, June 2014
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- Figure 153: New York Life – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 154: New York Life – Activities done – I have contacted/interacted with the brand online on social media to…, by demographics, June 2014
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Appendix – Trade Associations
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