Why Pacific Life Insurance Company Is Optimistic About The Future Of Life Insurance Sales And Why You Should Be, Too
The life insurance industry has faced a challenging landscape in the last several years, marked by slow overall growth, which can be attributed to economic and regulatory uncertainties, demographic shifts, and the world-wide pandemic. Over this same period, we have witnessed several major life insurance carriers exit or significantly scale back their life insurance businesses. These actions have left fewer players in the independent life brokerage channel, leading Brokerage General Agencies (BGAs) to align with stable carrier partners that possess a long-term commitment to the life insurance space.
Despite these hurdles, Pacific Life has emerged as a beacon of optimism, particularly in the realm of death protection-focused products like term life insurance and guaranteed universal life (GUL). Through strategic innovation, strong partnerships, and a commitment to excellence, Pacific Life has positioned ourselves as a leader in the BGA Independent Life Brokerage Channel, with ambitious goals for the future.
Explosive Growth in the BGA Channel
Since inception in 2017, Pacific Life’s suite of PL Promise products has achieved remarkable success, growing from scratch to a $120+ million1 annual business over that timeframe. Today, it is the second-largest life distribution channel at Pacific Life, providing valuable life insurance protection for over 300,000 households1 across the United States. This explosive growth is a testament to the strength of our partnerships with the BGA community. By working closely with BGAs and financial professionals, we’ve been able to deliver affordable death benefit solutions to families looking for protection, underscoring our commitment to the life insurance industry, the brokerage community, and consumers.
This success is particularly noteworthy given the broader challenges across the industry. While overall industry growth has remained modest, Pacific Life’s ability to scale our business with BGAs highlights the effectiveness of our strategy and the resilience of our BGA partnerships. Our dedication to meeting the needs of underserved markets has been a driving force behind our growth, enabling us to provide meaningful financial protection to a growing number of households.
Ambitious Growth Goals for 2025 and Beyond
Looking ahead, Pacific Life has set ambitious growth targets for our life insurance businesses, specifically with the PL Promise suite of products. Given the success of our PL Promise Term2 and PL Promise GUL3 products, we have identified the BGA channel as a significant growth opportunity, allowing us to invest in our people, technology, processes, and capabilities. Significant milestones are planned for 2025 and beyond. These goals reflect Pacific Life’s confidence in the future of the life insurance market and our commitment to life brokerage and the BGA channel.
Pacific Life’s optimism is grounded in our extensive resources and long-standing reputation for excellence. With nearly 160 years of experience in the financial services industry, Pacific Life has built a strong foundation of stability, growth, and service. Our PL Promise product suite exemplifies our commitment to addressing the needs of the underserved middle market, helping families close the financial protection gap with affordable and accessible solutions.
The PL Promise Term product, for example, offers highly competitive pricing and an innovative conversion option, while PAL+, Pacific Life’s accelerated underwriting program, ensures a seamless and efficient experience for both financial professionals and clients. Today, 62 percent of our PL Promise business will be underwritten on a No-Medical Exam/Fluid-less basis.4 Combined with Pacific Life’s iconic brand and consistently strong financial ratings, these offerings position us as a trusted partner for generations of families planning for a secure future.
Key Initiatives to Drive Future Success
To achieve our ambitious growth goals, Pacific Life has implemented several key initiatives aimed at enhancing our distribution, operations, and expansion of our product portfolio.
- Commitment to the BGA Community: Central to Pacific Life’s success is our unwavering commitment to the BGA community. The company recognizes that our achievements are built on the dedication and partnership of BGAs and financial professionals who work tirelessly to serve their clients. By fostering strong relationships and providing the tools and resources needed to succeed, Pacific Life helps ensure that our partners are well-equipped to navigate the challenges of the industry to help achieve their goals.
This collaborative approach has been instrumental in Pacific Life’s ability to protect over 300,000+1 households with affordable death benefit solutions. As the company continues to grow, we remain steadfast in our dedication to supporting the BGA community and delivering value to financial professionals and their clients. - Underwriting Excellence: Pacific Life’s Underwriting and New Business organization operates with a mission to deliver a consistent, best-in-class customer experience. By aligning underwriting guidelines, risk class names, and applications across channels, we are streamlining processes to better serve clients and to foster a unified experience. These changes not only enhance the customer experience but also enable Pacific Life to scale our operations effectively, supporting our growing business and consistent underwriting outcomes.
- Planned Future Expansion of the Product Portfolio for BGAs: Pacific Life is continually evolving our product offerings to meet the diverse needs of clients. The planned future expansion of the BGA product portfolio beyond PL Promise Term and PL Promise GUL reflects the company’s commitment to providing innovative product solutions that address the financial protection needs of families. By offering a comprehensive range of products, Pacific Life empowers BGAs and financial professionals to deliver tailored solutions that resonate with their clients.
- Leveraging Technology and Innovation: Advances in technology play a critical role in Pacific Life’s strategy for the future. From streamlined application processes to enhanced data analytics, we are leveraging innovation to improve efficiency and support growth objectives. These efforts help Pacific Life remain at the forefront of the industry, delivering value to our partners and clients alike.
A Bright Future for Life Insurance Sales
Despite the challenges facing the life insurance industry, Pacific Life’s optimism is well-founded. The company’s track record of success, combined with our ambitious growth goals and strategic initiatives, positions us as a leader in the market. By focusing on death protection products like PL Promise Term life and PL Promise GUL, Pacific Life is addressing a critical need for financial protection while driving growth in the BGA channel.
As the industry evolves, we are poised to adapt and thrive, leveraging our resources, expertise, and partnerships to deliver innovative solutions that meet the needs of families across the country. With a clear vision for the future and a commitment to excellence, Pacific Life is not only optimistic about the future of life insurance sales but also confident in our ability to be a thought-leader and shape the industry for years to come.[KK]
Reference:
- Created by Pacific Life Insurance Company data as of 12/16/2024.
- PL Promise Term is level premium term life insurance. Form series, P16LYT, S16LYT10, S16LYT15, S16LYT20, S16LYT25, or S16LYT30, varies based on level premium period chosen and state of policy issue.
- PL Promise GUL No-Lapse Guarantee Universal Life Insurance. Form series P18PRUL, S18PRUL, varies based on state of policy issue.
- Percentage of eligible cases meeting the accelerated underwriting criteria of ages 18-60, standard or better risk class, drop ticket submission, and up to $3M in coverage, or the modified underwriting criteria of ages 18-70 and coverage up to $3M for PL Promise Term and up to $2M for PL Promise GUL. Data for YTD thru 2024 Quarter 3. Created by Pacific Life Insurance Company data as of 9/30/2024.
This article is intended for financial professional use only. If you are not a financial professional, please visit our public website at PacificLife.com.
Pacific Life Insurance Company is licensed to issue insurance products in all states except New York. Product/material availability and features may vary by state.
Insurance products and their guarantees, including optional benefits and any crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker/dealer, insurance agency, or their affiliates from which products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company.
Life insurance is subject to underwriting and approval of the application and will incur monthly policy charges.
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