InsuranceSmell

In a recent blog, we discussed where the real value is in Asia–Pacific life insurance: overall, the region has been growing at a fast clip, but beneath the top-line numbers are countries with vastly different prospects and consumers. To capture value in Asia–Pacific, carriers must gain a granular understanding within markets, segments, channels, and product lines. Only then can executives accurately determine where to play. That’s just the first step, however. Insurers must then devise strategies to win in their chosen value pools. For carriers that get it right, the rewards are substantial: our research found that life insurers in Asia–Pacific achieved a total return to shareholders (TRS) of 9 percent a year from 2016 to 2019, on average. The top performers were able to double that figure, yet many others fell well short. In our experience, value growth leaders follow five core lessons to succeed in their selected Asian markets: 1. Becom...

There are numerous attractive targets and opportunities for insurance industry investors to create value. Three observations on the current market can help guide them. Over the past decade, insurance has been a steady, core component of transactions in the financial services sector. Aside from a slight dip in 2017, both the number and total value of insurance deals in the United States have steadily gone up—thanks in large part to the soaring number of insurtechs disrupting the value chain. However, with an economic slowdown likely approaching, many private equity firms and principal investors are worried about a corresponding slowdown in investment. Consolidations have been rampant in some parts of the value chain—for instance, among claims processing companies, and in insurance distribution channels. And in multiple areas, such as in front-end software, collision repair, and life insurance and annuities application intake, only duopolies or oligopo...

Life insurance blah blah blah. Is that what you hear when someone mentions it as part of your new job’s employee benefits round-up or when you see something about it on TV or social media?  Not to worry: we’ve got the low-down on what you need to know. And it’s really not as overwhelming (or underwhelming) as you might think. 1. It’s part of a sound financial plan.  You know about savings, you know about retirement. You might know a bit about investments and long-term financial planning for your health and happiness. And  life insurance  helps with planning for your loved ones’ long-term health and happiness, especially those who depend on your income, in case something were to happen to you. 2. There are different kinds of life insurance.  In addition to employment-based life insurance (which typically only lasts as long as your employment at your job), there’s term and permanent life insurance. Term life insurance:...

You’re probably already aware that a parent with a job outside the house most likely needs life insurance to protect their loved ones in case something were to happen. But it’s not just breadwinners who need coverage—stay-at-home parents do, too. Here are nine reasons why. 1. To replace the value of their labor.  Stay-at-home parents are caretakers, tutors, cooks, housekeepers, chauffeurs, and so much more 365 days a year. And all that work comes with a price tag:  Salary.com reports  that stay-at-home-parents contribute the equivalent of a $162,581 annual salary to their households. If the unthinkable were to happen, a surviving partner would be on the hook for a slew of new expenses that the stay-at-home parent previously shouldered. Term life insurance is generally a quick and affordable way to get a substantial amount of coverage like this for a specific period of time, such as 10 or 20 years—often until you pay off your...

Let’s think about this: You’ve earned the majority of what you’ll ever earn over the past 40 years. You should have accumulated enough assets to retire and live happily ever after, right? The ups and downs of the financial markets, however, have been an eye-opener about how uncertain your (or anyone’s) financial future may be. Most people think of life insurance only when they want to protect their family and provide a source of replacement income in the event of their death. They don’t think of it as a buffer to replace lost assets due to market volatility—for example, the market goes south and you die before you have the time to rebuild or replace the lost assets. es, I know. Your children are grown and gone. The mortgage is paid off. You have minimal debts. So, why should someone 60 or older consider purchasing permanent life insurance? Here are some reasons for life insurance after age 60: Offset loss of retirement income to a ...

It’s Insure Your Love Month. And what does that mean? Everyone wants the best for their family, whether that’s a spouse, children, aging parents, really anyone you need to take care of. And the numbers back that up 81% of Americans believe their family is their most valuable asset, according to the new “Protecting What Matters Most Study,” by Edward Jones and Life Happens. And that’s where life insurance comes in. Every day, you work hard at your job and at home to take care of your loved ones. By having life insurance, it means if something were to happen to you, your loved ones would be OK financially. But so many people don’t seem to be getting that message. Only four in 10 are protecting their family with an individual life insurance policy. In fact, a third of Americans say that life insurance is low or is not a priority when starting a family, according to this same study. Protect what you value most That’s why Life Happens conduct...