Insurers must prepare for the future, but uncertainties make it difficult to predict. These scenarios explore how the life insurance and annuities (L&A) industry landscape may develop over the next one to three years and helps leaders explore some of the potential medium-term implications of COVID-19.
Life & Annuity Insurance | 2021 | 2022 | 2023 |
Revenue | |||
Life insurance premiums | $159.5 | $177.8 | $184.4 |
Annuity premiums and deposits | 285.8 | 277.5 | 280.5 |
Accident and health premiums | 189.2 | 193.7 | 195.9 |
Total premiums, consideration and deposits | $637.8 | $650.8 | $655.5 |
Net investment income | 200.8 | 216.7 | 219.8 |
Total revenue | $945.7 | $921.9 | $933.1 |
Expense | |||
Benefits | 338.4 | 345.5 | 355.5 |
Surrenders | 362.7 | 407.6 | 447.1 |
Increase in reserves | 89.8 | 72.2 | 75.2 |
Commissions | 64.5 | 69.2 | 74.2 |
General and administrative expenses | 69.4 | 71.8 | 73.8 |
Total expenses | $873.9 | $842.8 | $852.7 |
Policyholder dividends | 44790 | 44729 | 44679 |
Net income before capital gains | $45.7 | $63.6 | $68.6 |
Net income | $37.4 | $63.7 | $69.7 |
Capital and surplus, end of year | 475.9 | 514.7 | 532.7 |