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 | 2020 | 2021 | 2022 |
|---|---|---|---|
| Revenue | |||
| Life insurance premiums | $143.1 | $159.5 | $177.8 |
| Annuity premiums and deposits | 294.6 | 285.8 | 277.5 |
| Accident and health premiums | 184.7 | 189.2 | 193.7 |
| Total premiums, consideration and deposits | $625.7 | $637.8 | $650.8 |
| Net investment income | 186.0 | 200.8 | 216.7 |
| Total revenue | $881.2 | $945.7 | $921.9 |
| Expense | |||
| Benefits | 314.2 | 338.4 | 345.5 |
| Surrenders | 323.4 | 362.7 | 407.6 |
| Increase in reserves | 109.8 | 89.8 | 72.2 |
| Commissions | 60.1 | 64.5 | 69.2 |
| General and administrative expenses | 67.0 | 69.4 | 71.8 |
| Total expenses | $825.2 | $873.9 | $842.8 |
| Policyholder dividends | 18.0 | 44790 | 44729 |
| Net income before capital gains | $32.9 | $45.7 | $63.6 |
| Net income | $22.1 | $37.4 | $63.7 |
| Capital and surplus, end of year | 440.5 | 475.9 | 514.7 |
Source: NAIC data, sourced from S&P Global, Insurance Information Institute
