U.S. life insurers are getting much more of their retail product premium income from annuities than from life insurance coverage as of late.
Particular person annuities accounted for $344 billion of life insurers’ $1.5 trillion in direct written premiums in 2023, or about 24% of the overall, in accordance with new industrywide totals from A.M. Greatest.
Solely $168 billion of the premiums, or 11% of the overall, got here from particular person life insurance coverage.
Direct written premiums elevated 16% between 2022 and 2023 for particular person annuities and fell 5.3% for particular person life.
What it means: Because the 69 million child boomers rush towards retirement, the main target at life insurers is way more on earnings planning. One query is whether or not elevated boomer curiosity in property planning and a doable enlargement of the property tax in 2026 will push the income pendulum again towards life insurance coverage.
The info: A.M. Greatest is one in every of a small variety of what the U.S. Securities and Change Fee classifies as nationally acknowledged statistical ranking organizations.
The agency will get its insurance coverage firm efficiency knowledge from the official experiences the insurers file with state insurance coverage regulators, primarily based on the regulators’ statutory accounting rules, slightly than the U.S. typically accepted accounting rules that public corporations use.