The State of the U.S. Life & Health Insurance Market. Stacy Varney, Gen Re USA International Product Trends 2016

Transcription

1 The State of the U.S. Life & Health Insurance Market Stacy Varney, Gen Re USA International Product Trends 2016

2 Agenda Growth Consumer Innovation Distribution U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 2

3 Growth Trends The haves and the have nots U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 3

4 2015 Gen Re Market Surveys Group Term Life Group Disability Medicare Supplement Critical Illness Individual Disability Covering 85% to 95% of the U.S. Market U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 4

5 Group Term Life and AD&D Growth Rates GTL Sales In-force AD&D Sales In-force Premium: $2.5B $23.5B Premium: $212.1M $1.6B Lives: 13.0M 107.3M 10% Sales In-force 10% Sales In-force 5% 5% 0% 0% -5% -5% -10% -10% -15% % Source: Gen Re, U.S. Group Term Life Market Surveys U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 5

6 Group Disability Growth Rates LTD Sales In-force Premium: $1.3B $10.4B Lives: 5.2M 39.7M STD Sales In-force Premium: $815.2M $4.2B Lives: 3.0M 18.8M 20% Sales In-force 20% Sales In-force 10% 10% 0% 0% -10% -10% -20% % Source: Gen Re, U.S. Group Disability Market Surveys; Gen Re and Milliman, Group Disability Market Survey U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 6

7 Medicare Supplement and Critical Illness Growth Rates Med Supp Sales In-force CI Sales In-force Premium: $2.2B $15.8B Premium: $432.2M $1.1B Lives: 855.5K 8.5M Policies: 1.5M 3.5M 20% Sales In-force 50% Sales In-force 15% 10% 5% 40% 30% 20% 10% 0% % Source: Gen Re, U.S. Medicare Supplement and Critical Illness Market Surveys U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 7

8 Individual Disability and Individual Life ID Sales In-force IL Sales In-force Premium: $407.2M $4.9B Face Amt: $1.6T $12.3T Policies: 248.9K 3.2M Policies: 10.2M 141.9M 10% Sales In-force 10% Sales In-force 5% 5% 0% 0% -5% -5% -10% -10% -15% % Source: Gen Re, U.S. Individual Disability Market Surveys; ACLI, 2016 Preliminary Fact Book U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 8

9 Mergers and Acquisitions in the News Sun Life Financial Completes Acquisition of U.S. Employee Benefits Business of Assurant Published 3/1/2016 Judge sticks with Aetna-Humana merger case, reassigns Anthem-Cigna Published August 5, 2016 Judge John D. Bates says he ll keep Aetna and Humana s case because it must proceed before a merger deadline of Dec. 31. Zurich Buys MAA Takaful Berhad, Expanding in Malaysia Takaful Market Published 6/30/2016 Hartford completes acquisition of specialty insurer Published 8/1/2016 Hartford Financial Services Group Inc. said it has acquired Maxum Specialty Insurance group for $168 million in cash. Catalina to Buy Hartford Financial Products International & Downlands Liability Management U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 9

10 Consumer Trends The empowered consumer U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 10

11 Buying Behavior Dependent Children 35% 65% With children 41% 59% No children Buyer Non-Buyer Marital Status 40% 60% 38% 62% 40% 60% Single, never married Married Divorced, separated or widowed Generation 40% 37% 60% 63% Gen Y Source: Gen Re, Voluntary Employee Pulse, 2015 Results Gen X 39% 61% Boomer 54% 46% Silent U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 11

12 Trend in Percentage of Companies Offering Voluntary Benefits 100% % 60% 40% 20% 0% Accident Cancer Critical Illness Life Long-Term Disability Medicare Supplement Short-Term Disability Source: Aflac, 2014 Aflac WorkForces Report U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 12

13 Percentage of Employees Interested in Buying Voluntary Benefits 30% Own a Voluntary Product Today Don t Own Any Voluntary Products Today 25% 20% 15% 10% 5% 0% Dental LTD LTC Hospital Indemnity STD Cancer/ Dread Disease Universal Life Vision Source: Eastbridge Consulting Group, Inc., Worksite MarketVision TM The Employer Viewpoint 2014 Critical Illness Term Life Accident U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 13

14 Distribution Trends Where technology meets human interactions U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 14

15 Digital Channels Are Key for the Customer Experience What actions is your organization taking to improve the experience of its customers in the coming year? Improving cross-channel customer experiences Improving the online customer experience 63% 63% Improving the experience of interacting with call center agent Adding or improving mobile customer experiences Using communities & other types of social computing Improving the store/branch customer experience Improving the phone self-service customer experience 47% 41% 40% 34% 33% Creating a dedicated user/customer experience group 24% Source: A commissioned study conducted by Forrester Consulting on behalf of Accenture Interactive, June 2015 U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 15

16 Utilization Rate Of Those Offered the Learning Method Learning Methods Buyers Non- Buyers Printed materials 84% 84% Website to view plan options 70% 70% Group meeting 69% 66% Benefits fair 52% 48% One-on-one meeting 51% 33% Webinar 44% 38% Mobile app 42% 21% Telephone number to contact professional 35% 24% Source: Gen Re, Voluntary Employee Pulse, 2015 Results U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 16

17 Learning Methods for Voluntary Benefits Percentage of Participants Offered Learning Methods by Employer Printed materials 91% Telephone number to call a professional Website to view plan options Group meeting 87% 83% 71% One-on-one meeting Benefits fair Webinar Mobile app 56% 41% 38% 25% Source: Gen Re, Voluntary Employee Pulse, 2015 Results U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 17

18 Insurance Exchange Enrollment Employees under 65 and dependents 40 Estimated Actual Projected Millions Source: Accenture analysis, based on data from: U.S. Census Bureau, Kaiser Employer Health Benefits Annual Survey U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 18

19 Innovation Trends The market is evolving U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 19

20 Macro Trends Gamification Mobile Wearables Multi-channel marketing Electronic Health Records Internet of things InsureTech Behavioral economics Big Data Cognitive computing CYBERSECURITY Social Population health Predictive modeling Machine learning Consumer-driven CLOUD Digital transformation Telemedicine FinTech E-applications U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 20

21 Focal Points Internet of things Electronic health records Automated underwriting Technology Cognitive computing Decision analytics Capital infusion U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 21

22 Insurance Start-Ups MassMutual s in-house online life insurance startup HAVEN oscar First health insurer created for ACA consumers The world s first Peer to Peer insurance carrier Lemonade Health I.Q. The first scientific way to measure health consciousness U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 22

23 Consumer-Focused Solutions American Family s DreamBank State Farm s Next Door MassMutual s Society of Grownups John Hancock s Vitality PolicyGenius U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 23

24 Proprietary Notice The material contained in this presentation has been prepared solely for informational purposes by Gen Re. The material is based on sources believed to be reliable and/or from proprietary data developed by Gen Re, but we do not represent as to its accuracy or its completeness. The content of this presentation is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. U.S. Market Overview Stacy Varney Sept 2016 Proprietary and Confidential General Re Life Corporation 24