Friday, March 29, 2024

LIMRA

Economic factors continue to influence employees’ enrollment decisions. According to a recent LIMRA consumer survey, more than half of workers cite inflation and a potential recession as having at least some impact on their enrollment decisions.

“While COVID-19 is playing less of a role, it still has an influence on enrollment decisions, especially when it comes to certain products such as life insurance and supplemental health products,” said Patrick Leary, corporate vice president and director of LIMRA’s workplace benefits research program. “During the pandemic, employees became much more aware of the need for insurance and related protection products, and that trend continues, although to a lesser extent.”

Supplemental Health Insurance
In the fourth quarter, U.S. workplace supplemental health product sales—accident, critical illness, cancer, hospital indemnity, and other supplemental health insurance products*—totaled $708 million in new premium, an eight percent increase year-over-year. In 2022, workplace supplemental health insurance product sales were $2.9 billion in new premium, up 12 percent from 2021 results.

The 2022 sales growth was driven by exceptionally strong results in the first quarter of 2022, when total supplemental health new premium increased 17 percent. In the following three quarters of the year supplemental health premium sales continued to grow, albeit at a slower pace.

All supplemental health product lines recorded growth in the fourth quarter: Accident insurance grew nine percent, critical illness climbed 12 percent, cancer insurance improved nine percent, and hospital indemnity experienced 10 percent growth.

Disability Insurance
Total workplace disability insurance new premium sales was $1 billion in the fourth quarter 2022, a year-over-year 25 percent increase. Long-term disability insurance new premium increased 21 percent in the fourth quarter and 13 percent for the year. Short-term disability new premium was up 28 percent for the quarter and four percent for the year.

Overall, U.S. workplace disability new premium totaled $3.9 billion in 2022, a year-over-year increase of eight percent.

Life Insurance
In the fourth quarter 2022, total workplace life insurance new premium was $837 million, down nine percent from prior year results. For the year, U.S. workplace life insurance new premium totaled $3.9 billion, down one percent from 2021.

“After the 14 percent increase in workplace life insurance premium in 2021—one of the largest increases recorded over the past 30 years—workplace life insurance premium normalized in 2022,” Leary said.

LIMRA’s workplace benefits sales surveys for life insurance, disability insurance and supplemental health represent at least 90 percent of their respective annualized premium markets.

You can find the latest data table with U.S. workplace sales trends in LIMRA’s Fact Tank, https://www.limra.com/en/newsroom/fact-tank/.

*“Other supplemental health products” represents products that do not fit the other categories, such as gap insurance, minimum essential coverage plans, limited benefit medical, and heart/stroke products.

Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 financial services member organizations navigate change with confidence. Visit LIMRA at https://www.limra.com.

NAILBA

As a Finseca Community, the NAILBA Board of Advisors governs the brokerage community. Over the past year, a number of advisors have had their terms expire but extended their volunteer efforts to ensure smooth transition with the NAILBA Finseca merger.

In February-March 2023, there was a call for nominations to serve on the NAILBA Board of Advisors. The following new additions have been approved by the Executive Committee and the NAILBA community to serve on the NAILBA Board of Advisors for a two (2) year term: Diana Greenberg, Total Financial, CA, (LIBRA); Angie Hughes, Producers XL, AZ, (LIBRA); Lorrie Gibbons, KAFL Insurance Resources, NY, (AIMCOR); Darius Bakhtiar, Capitol Metro, MD, (Tellus); Chad Druvenga, CBS Brokerage, MN, (Tellus).

The NAILBA Board of Advisors Executive Committee remains: Victoria Van Dusen-Roos, chair, Diversified Brokerage Services, Inc., Minneapolis, MN; James Wong, chair elect, Partners Advantage Irvine, CA; Debbie Hannam, treasurer, Brokers Clearing House, LTD, West Des Moines, IA; John Gilbert, past chair, The National Benefit Corp., West Des Moines, IA. Directors who continue to serve on the NAILBA Board of Advisors are: Jim Duff, Crump Life Insurance Services, Harrisburg, PA; Jason Grover, Ash Brokerage, Ft. Wayne, IN; and Luke Ramsey, The ASA Group, Little Rock, AR.

NAILBA thanks all members of the Board of Advisors for their service to NAILBA, and welcome the new additions to leadership.

Diversified Brokerage Services

NFP, a leading property and casualty broker, benefits consultant, wealth manager and retirement plan advisor, today announced it has acquired Diversified Brokerage Services, Inc. (DBS). Acquiring DBS expands NFP’s life insurance business with capabilities that support larger financial institutions, including broker-dealers, wirehouses and RIAs. DBS principals George “Chip” Van Dusen IV, president and CEO, and Tori Van Dusen-Roos, COO, will join NFP and report to Mike James, executive vice president, chief sales officer. The acquisition closed on April 10.

“I’m very excited to welcome Chip, Tori and their team to NFP,” said James. “They are industry leaders in supporting financial advisors through enterprise relationships with large financial institutions and will be valuable partners for our advisors and producers. With DBS onboard, we will provide an enhanced, differentiated offering across our existing retail and wholesale life insurance businesses. I look forward to DBS’s contributions to our growth, culture, and support of current and future clients.”

Minneapolis-based DBS is one of the largest life insurance BGAs in the United States. They support financial advisors across the country through enterprise relationships with large financial institutions, as well as individual relationships under a wholesale model. DBS offers various value-added services to these advisors, including education, point-of-sale support and placement.

“We’re thrilled to join NFP, an organization with significant scale in the life insurance space that shares our focus on growth, people and community,” said Chip Van Dusen and Tori Van Dusen-Roos in a joint statement. “We have very ambitious goals for growth, and with their commitment and resources NFP is the ideal partner to help us achieve it. It’s exciting to see so many opportunities to collaborate and deliver additional value and expertise to our current distribution partners as well as those with whom we build relationships.”


NFP is a leading property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor that provides solutions enabling client success through the expertise of over 7,400 global employees, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors, and financial institutions. NFP is the ninth best place to work for large employers in insurance, seventh largest privately-owned broker, fifth largest benefits broker by global revenue and 13th largest broker of U.S. business (all rankings according to Business Insurance).


Visit NFP.com to discover how NFP empowers clients to meet their goals.

Diversified Brokerage Services is one of the largest multi-carrier brokerage general agencies in the United States specializing in life insurance. With a national headquarters located in Minneapolis, MN, DBS supports financial professionals nationwide as they look to secure life insurance, long term care, linked benefits, disability insurance and annuities for their clients.

Hexure

Hexure, a provider of sales and regulatory automation solutions for the life and annuity industry, recently announced the appointment of Jaylene Kunze as the company’s new Chief Financial Officer (CFO).

Kunze brings more than 20 years of experience in finance and accounting to Hexure and will be a key member of the executive leadership team. She will oversee Hexure’s finance organization. Brent Tuck, Hexure’s current CFO, will remain with the company moving into a new strategic financial role to allow him to spend more time with his family.

“Jaylene’s experience leading companies through times of growth combined with her leadership style made her a great fit for Hexure,” said Hexure CEO Laird Rixford. “We look forward to her impact as we continue to build solutions that power digital sales journeys for wealth management, insurance and financial services products.”

Kunze has previously served as CFO of Urbint, Uplight and Tendril. During her tenure at Tendril, she spearheaded the company’s acquisition of five companies that led to the formation of Uplight. She has a bachelor’s degree in accounting from Hillsdale College and is a certified public accountant. She is chair of the board of directors for non-profit A Precious Child and has been named to the Colorado Titan 100 list in 2022 and 2023.

“It is an exciting time to join Team Hexure as we work to build digital sales solutions for the future,” Kunze said. “I’m looking forward to joining Laird and the rest of the leadership team on this growth journey.”

“I’m grateful for the support of Laird and the Hexure team as I move into my new role so I can improve my work and life balance,” said Tuck. “Jaylene will be a great asset to the team, and I’m excited to work with her as we at Hexure continue to drive toward our company vision.”

Founded in 1995, Hexure provides digital sales solutions to the insurance and financial services industry across various lines of life insurance, annuities, retirement, and wealth management products.

Mutual of Omaha

Tamara Franklin, who served as Chief Digital, Data and Analytics Officer at global professional services firm Marsh & McLennan Companies, Inc., has been elected to the Mutual of Omaha Board of Directors, Chairman and CEO James Blackledge announced.

Franklin has more than 25 years of experience leading digital businesses, with a focus on strategic planning, digital transformation, data analytics, business development and customer acquisition. In addition to her role at Marsh & McLennan, she held senior leadership positions at IBM, Scripps Network Interactive (now Discovery, Inc.) and Time Warner, Inc.

“Tamara Franklin brings a wealth of experience in digital business development, data analytics, digital transformation and strategic planning that will add a valuable dimension to the Mutual of Omaha Board of Directors,” Blackledge said. “We will rely on her perspective, as well as that of our other distinguished directors, as we work to serve our customers and grow our business in an increasingly competitive and highly regulated environment.”

Franklin earned her master’s in business administration from Harvard University and a bachelor’s degree in English from Yale University. She also serves on the Board of Directors of Genpact, Ltd.

Founded in 1909, Mutual of Omaha is a highly rated, Fortune 500 organization offering a variety of insurance and financial products for individuals, businesses and groups throughout the United States. As a mutual company, Mutual of Omaha is owned by its policyholders and committed to providing outstanding service to its customers. For more information about Mutual of Omaha, visit www.mutualofomaha.com.

Haven Life

Haven Life recently announced a coverage increase of its no-medical Simplified Issue product, Haven Simple, from a maximum of $500,000 to $1,000,000. With this expansion, Haven Simple is closing the gap between the Haven Term policy which offers up to $3 million in coverage and requires a medical exam for most applicants, giving consumers more freedom to apply for the policy that best suits their needs and budget.

“Being able to increase the Haven Simple coverage was an important mission for us this year. Taking time to get a medical exam and waiting for results represents a significant obstacle for some people and may actually prevent them from purchasing a life insurance policy,” shared Ben Newland, head of Product at Haven Life. “Giving consumers the option to opt out of a medical exam, fast issuance speeds, and improved coverage allows us to bring more American households closer to achieving their goals of financial security.”

A general rule of thumb is to have coverage at least five to ten times your annual salary. By increasing coverage maximum to $1 million, those making over $100,000 per year can now apply for a Haven Simple policy that reflects their financial needs.

Consumers may also be surprised to find out that a $1 million policy is still affordable. For example, a healthy 25-year-old woman could purchase a 20-year, $1 million Haven Simple policy for about $29 per month, or a little less than $1 per day . Consumers can calculate how much their ideal life insurance policy would cost with Haven Life’s online quote tool.

With this change, Haven Simple offers:

  • New up to $1 million in coverage (up from $500,000).
  • A quick, easy and simple digital application that you can fill out in the same time it takes to eat lunch–and average issuance of coverage in as little as 15 minutes.
  • Term policies of 5, 10, 15 and 20 years.
  • Additional features of level premiums, accelerated death benefit, paperless processing, no obligation free-look period, and credit card payments.
  • Policies are issued by C.M. Life Insurance Company, a subsidiary of MassMutual, one of the country’s oldest and most respected insurers and an A++ A.M. Best Rating for financial strength and claims-paying ability.


Haven Simple is a Simplified Issue Term Life Insurance Policy (ICC20 HAVEN SIMPLE in certain states, including NC) issued by C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.

Issuing the policy or paying its benefits depends on the applicant’s insurability, based on their answers to the health questions in the application, and their truthfulness.

MassMutual’s financial strength ratings are as of February 21, 2023: A.M. Best Company: A++ (Superior; top category of 15); Fitch Ratings: AA+ (Very Strong; second category of 21); Moody’s Investors Service: Aa3 (High Quality; fourth category of 21); Standard & Poor’s: AA+ (Very Strong, second category of 21). Ratings are for MassMutual (Springfield, MA 01111) and its subsidiaries, C.M. Life Insurance Co. and MML Bay State Life Insurance Co. (Enfield, CT 06082). Ratings are subject to change.

Haven Life Insurance Agency, LLC (Haven Life) is re-thinking how people financially protect the ones they love. Haven Life is committed to delivering exceptional products, delightful purchasing experiences, and meaningful moments of service to the modern life insurance customer.

Hexure

Hexture, a provider of sales and regulatory automation solutions for the life and annuity industry, recently announced the appointment of Nag Vaidyanathan as the company’s new Chief Technology Officer (CTO).

A veteran of the insurance and financial services industries, Vaidyanathan brings to the role a reputation and strong track record of delivering cohesive, integrated technology as part of digital transformation goals. As CTO, Vaidyanathan will be accountable for the technology strategy, and the delivery of Hexure’s innovative solutions that enable a better, quicker digital sales process for wealth management, financial and insurance products.

“Our entire technology and development team is focused on creating solutions that power better digital sales connectivity, processes and experiences so our clients can achieve their business goals,” said Hexure CEO Laird Rixford. “With his experience, vision and technical expertise, we’re excited to have Nag lead the team to the next level for our clients.”

Vaidyanathan brings more than 28 years of experience to Hexure and a deep knowledge of the insurance and financial services industry gained from working with global teams as CTO of Duck Creek Technologies, CTO of OneMain Financial, CIO at Danske Bank in Denmark, and 20 years at Allstate. He has a long history of being a senior information technology leader focused on the intersection of people, ways of working, infrastructure and information technology transformation.

“I’m thrilled to join Laird and the Hexure executive leadership team in the mission of providing innovative solutions that empowers our clients’ success,” Vaidyanathan said. “This is an exciting time to be at Hexure, and I’m looking forward to leading the global engineering and development teams as they build the digital sales solutions of the future.”

Vaidyanathan has a doctorate in immersive technologies, master’s degrees in business administration and engineering management, and a bachelor’s degree in electrical engineering. He serves on the boards of Health4Silvers and Chrp Technologies. He is also the Chicago chapter president of Pratham, an organization that provides education and vocational skills for the underprivileged in India, and is a board advisor for Indo American Community Services.
Vaidyanathan will be taking over CTO responsibilities from Rixford, who has been serving as interim CTO.

Founded in 1995, Hexure provides digital sales solutions to the insurance and financial services industry across various lines of life insurance, annuities, retirement, and wealth management products. Carriers and distributors use its solutions to build customer-centric sales experiences, accelerate submissions, reduce paper processes, meet regulatory requirements, and improve in-good-order sales.

Mutual of Omaha

Insurance industry leader James R. Boyle, who has served as president and CEO of both Foresters Financial and John Hancock, has been elected to the Mutual of Omaha Board of Directors, Chairman and CEO James Blackledge announced.

In his most recent role as president and CEO of Foresters Financial, Boyle led the strategic repositioning of the company, rebranding a mid-sized fraternal insurer as a market-leading disruptor, rationalizing its product line to include innovative wellness focused benefits, expanding omnichannel distribution and enabling same-day mobile transaction processing.

Prior to leading Foresters Financial, Boyle was president and CEO of John Hancock, the U.S. subsidiary of Manulife Financial. Over his 20-year career at John Hancock, he led multiple businesses, culminating in the leadership of the entire U.S. business as chairman, president and CEO.

“Jim Boyle brings a wealth of experience in insurance and financial services, strategic leadership, risk management and operational excellence that will add a valuable dimension to the Mutual of Omaha Board of Directors,” Blackledge said. “We will rely on his perspective, as well as that of our other distinguished directors, as we work to serve our customers and grow our business in an increasingly competitive and highly regulated environment.”

Boyle graduated with honors from Boston College, earning a bachelor’s degree in accounting. He also serves as a trustee of John Hancock Mutual Funds and is a senior advisor to Blackstone Insurance Services.

Founded in 1909, Mutual of Omaha is a highly rated, Fortune 500 organization offering a variety of insurance and financial products for individuals, businesses and groups throughout the United States. As a mutual company, Mutual of Omaha is owned by its policyholders and committed to providing outstanding service to its customers. For more information about Mutual of Omaha, visit http://www.mutualofomaha.com.

LIMRA news

Total U.S. single premium buy-out sales were $26.1 billion in the third quarter, a 66 percent increase from the prior year. For the second consecutive quarter, buy-out sales hit a new record high, according to LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey.

Year-to-date (YTD), buy-out sales totaled $41 billion, 89 percent higher than the same period in 2021. These results exceed the previous annual record of $36 billion set in 2012. At this pace, LIMRA projects 2022 buy-out sales will surpass $50 billion.

“While several jumbo deals drove record sales, there were also a record number of contracts sold in the third quarter, signaling widespread industry growth,” said Mark Paracer, assistant research director, LIMRA annuity research. “Greater plan sponsor awareness and desire to de-risk their pension liabilities, rising interest rates and escalating costs to maintain plans are likely driving market expansion in the U.S. We expect these factors to continue to propel the U.S. market into 2023.”

In the first three quarters of 2022, buy-out and buy-in sales collectively were $43.8 billion, which is 73 percent higher than the same period in 2021, and sets a new record for cumulative sales.

Overall, there were 145 buy-out contracts—covering 342,870 participants—sold in the third quarter, up 23 percent from third quarter 2021. YTD, a total of 366 buy-out and buy-in contracts were completed, 46 percent higher than prior year results.

There were no buy-in contracts completed in the third quarter. Through Sept. 30, 2022, there were four buy-in contracts sold for $2.7 billion.

Single premium buy-out assets reached $230.3 billion in the third quarter, up 27 percent from prior year. Single premium buy-in assets were $6.65 billion, one percent higher than third quarter 2021. Combined, single premium assets were $236.9 billion in the third quarter, a 26 percent increase from third quarter 2021 results.

A group annuity risk transfer product, such as a pension buy-out product, allows an employer to transfer all or a portion of its pension liability to an insurer. In doing so, an employer can remove the liability from its balance sheet and reduce the volatility of the funded status.

This survey represents 100 percent of the U.S. pension risk transfer market. Breakouts of pension buy-out sales by quarter and pension buy-in sales by quarter since 2016 are available in the LIMRA Fact Tank at https://www.limra.com/en/newsroom/fact-tank/.

Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 member organizations navigate change with confidence. Visit LIMRA at http://www.limra.com.

Mutual of Omaha

Mutual of Omaha has officially started construction of a new 44-story headquarters tower in downtown Omaha that will support the insurance and financial services company’s future growth while contributing to the economic vitality of the city’s urban core.

Mutual Chairman and CEO James Blackledge was joined by Omaha Mayor Jean Stothert and other dignitaries for a ceremonial groundbreaking to kick off construction of the 677-foot tall office tower, which is slated to open in 2026.

“Back in 1909, Mutual of Omaha got its start in downtown Omaha. Today, we are inspired by the energy here, and we are excited to be part of it,” Blackledge said. “Our investment in a downtown headquarters tower provides a rare opportunity to create a dynamic workplace for our associates while contributing to the strength of our downtown.”

Blackledge said the state-of-the art headquarters tower is designed to support flexible work arrangements, including in-person, remote and hybrid work modes. “We are creating a hub for work at Mutual of Omaha–a dynamic and inviting place where our associates come together to work, to collaborate, to innovate, to serve our customers and to build on the culture that makes Mutual of Omaha such a special place,” he said. “That’s why we are calling our new headquarters Project Beacon. It will be a beacon inviting our employees to a new, modern workplace from which to fulfill our noble purpose of helping our customers protect what they care about and build their financial futures. It also will be a beacon for vitality, development and investment in our downtown.”

Highlighting the structure will be an inviting street-level lobby featuring conference space as well as an “experience center” spotlighting Mutual’s history, brand and impact on customers and the community. The building will also feature a “sky lobby” that will welcome associates from the parking facility. A multi-level concept on the 16-20th floors, it will feature food services with diverse culinary offerings, a fitness center, employee wellness services, concierge technical support services as well as flexible conference and meeting spaces. Highlighting the sky lobby floors are landscaped outdoor terraces with sweeping views and outdoor dining, meeting and fitness spaces for Mutual associates.

The 44th floor will feature conference facilities highlighted by expansive views from a two-story atrium. Senior leaders will be positioned near their teams, eliminating the need for an executive floor.

At 800,000 square feet, the building is sized for a hybrid work model. Mutual’s current headquarters has approximately 1.7 million square feet.

For more information about Mutual of Omaha, visit http://www.mutualofomaha.com.

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