As stated by the publisher of the report, this new study critically examines the life insurance segment in the United States, with respect to written premiums, commissions, total loss incurred, loss ratio, expenses. At the same time, the report also reviews different distribution channels for products in the segment, presenting a view of the performance of the life insurance segment during the period of review. Furthermore, it also presents a scenario of the scope of growth and competition in the segment through the year 2016.
Another market report published by a financial firm in U.S stated that the revenues for the insurance industry have risen by 8% during 2010 to 2011. However, the growth is considered “flat” over the period of 5 years. According to the report, the total revenues for the industry were little more than $815 billion in the year 2007, which grew to only $844.7 billion in 2008. Later to that, revenues slipped into the hands of the recession, restoring back to only $835 billion in 2011. At the same time, the net income for the industry decreased by 8.8% in 2010-2011, standing at $14.4 billion in the year 2011. This is almost less than half the net income earned in 2007, i.e. $31.6 billion.
The decrease in industry revenues has been attributed to growing levels of unemployment and uncertain economic scenario during the financial crisis, which resulted in a dramatic drop in demands for group life insurance policies and Gross Written Premium value in the category of term life insurance. The life insurance companies slashed down their interest rates during period, resulting in significant earning losses for the life insurers.
Owing to the continuous drop in interest rates and its depressing impact on corporate earnings, the life insurance segment in the United States is earning negative ratings across different firms. With millions of people still unemployed in U.S or primarily concentrating on repaying their debts, consumers are exhibiting a meager interest for fresh investments in life insurance or annuities.