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The US life insurance and annuities market is experiencing a shifting landscape through legislative updates and product updates. Proposals to change fiduciary rules may impact the qualified annuity space, while the ongoing influence of IRC 7702 changes can reshape the life insurance sector.

Insurance carriers are refreshing their product offerings to cater to changing customer preferences and the sector's evolving needs in the face of legislative and regulatory reforms. Further, changes in interest rates have made life insurance and annuities an attractive investment option.

Learn about five trends that can protect and grow your book of business and your clients' financial wellbeing by requesting our report, Shifting Dynamics in the Life Insurance and Annuities US Market.

3 key findings in the report

  • The life insurance market is shifting toward asset- or index-based annuities.
  • Insurance carriers are enhancing accumulation-focused product offerings in response to consumer's concerns about inflation and retirement income.
  • Technology, such as automated underwriting and self-service portals, is streamlining insurance applications.

The 5 trends to know right now

Fiduciary responsibility. The Department of Labor (DOL) has proposed fiduciary regulations that would put the account holders' financial wellbeing ahead of the fiduciaries and require greater transparency. What significant changes should you expect in the insurance industry if the regulations go into effect?

Estate taxes. The current Tax Cut and Jobs Act (TCJA) provisions are set to expire at the end of 2025. If allowed to expire, a cut in the estate and gift tax exemption amount would increase transfer taxes. What policies can help mitigate the tax impact?

The return of survivorship products. Client interest in survivorship life insurance is increasing. How can it mitigate estate taxes and enhance liquidity?

Long-term care insurance. More people are choosing life insurance products that incorporate long-term care coverage as well as death benefits. What factors are driving this shift?

The use of artificial intelligence (AI). While AI has known risks, it could help the underwriting process by analyzing vast amounts of data and detecting fraud. Could state-led prohibitory orders against the use of AI have ramifications for product pricing?

Digitization. Learn about how online applications, automated underwriting, e-signatures and self-service portal are streamlining time-consuming processes.

Insurance as a workplace benefit. To attract and retain employees, some companies offer life insurance and disability insurance as part of their total rewards strategy.

Insurance products in the investment portfolio. If market volatility continues, the demand for insurance products is likely to increase. What products are insurers moving to as they adapt?

Mergers and acquisitions are picking up the pace. How are major indexed annuity mergers reshaping the landscape?

With many changes in play, it's important to stay abreast of the key areas that may significantly influence the US life insurance and annuity space in 2024 and beyond. Read the report and connect with your Gallagher consultant to strategize.

Access the report

Author Information

Jason Orlosky

Jason Orlosky

Head of Investment Strategy and Platform, Area Vice President, Financial Planning

Disclaimer

GBS Insurance and Financial Services, Inc., does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be use, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

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