As life insurers seek to find more buyers in the United States, sales in foreign markets are booming for some carriers, particularly in Asia as millions continue to transition into the middle class.
Meanwhile, carriers are also courting specific markets within the United States, including Hispanics, gay couples, up-and-coming Gen Yers, and women — particularly those who are the main breadwinner in their household.
Prudential’s international insurance segment manufactures and distributes individual life insurance, retirement and related products, including certain health products with fixed benefits, and distributes its products through multiple distribution channels, including two captive agent models, “life planners” and “life consultants,” as well as bank and independent agency third-party distribution channels.
Americans still underinsured
Many insurers are expanding in foreign countries to make up for moderate growth in the U.S.
In its first quarter (fiscal year ending Sept. 30), New York Life’s individual recurring premium life insurance sales through agents rose 20 percent, over the first quarter of 2012. The number of life insurance policies sold through agents rose 6 percent, with 45 percent of the company’s new life insurance policies produced by agents serving the cultural markets. New York Life’s cultural markets include African-American, Chinese, Hispanic, Korean, South Asian and Vietnamese.
In the future, Gen Yers present an emerging opportunity, as the US Census Bureau projects that they will make up 65 percent of the American workforce within the next five years, Conti says.