Every week The Friday Five will bring you interesting news and information from around the insurance industry. This week: LIMRA’s 2019 predictions, recruiting millennials, and winter weather prep.
LIMRA releases 2019 predictions
LIMRA recently published its annual predictions report. While the report offers quite a few predictions, below are four examples that stood out. In 2019, LIMRA is expecting U.S. individual life insurance sales to rise four percent to $15.0 billion. This growth will be primarily driven by gains in disposable income and bond rates, coupled with low unemployment. For the past decade, indexed universal life (IUL) has been the success story of the individual insurance market, with annualized premiums increasing each year due to low interest rates and a strong stock market. While LIMRA still expects IUL growth in 2019, the driving forces of that growth will change. Read the LIMRA press release here.
Thinking about recruiting millennials?
In her PropertyCasualty360 article, So your insurance agency wants to recruit millennials?, Kristin Nease suggests insurers ask themselves three questions to evaluate whether their agency appeals to millennials: 1. How do you announce job openings, and where do most of your recruits come from? 2. Do you encourage and empower the use of technology in business? 3. Is your employee value proposition compelling? Check out the article to get her insights on millennial recruiting.
Some car & home policyholders never re-shop
Excerpted from Robert Carnevale’s ValuePenguin article One-Third of Americans Never Re-Shop for Car or Home Insurance: A recent survey from Policygenius discovered one-third of Americans have never re-shopped for a new policy for their homeowners or car insurance and nearly 50% of the policyholders who have searched around for a new policy haven’t done so in the last year. While it’s easy to imagine less tedious ways to spend an afternoon than insurance shopping, such as having a root canal or hanging out at the DMV, ignoring the possibility of a better policy means you’re fine with overpaying your insurance providers.
Drone usage rises amidst 2018 weather disasters
The use of drones and aerial imagery saw a dramatic increase following a series of natural catastrophes in 2018 as insurers made them an integral part of their disaster recovery procedures, particularly following the hurricanes in the Southeast. From the images of Hurricane Florence’s floods across North and South Carolina to Hurricane Michael’s devastation in the Florida Panhandle, insurers were able to see the impact immediately and get straight to work handling claims for their customers, and gather data from the events from aerial images. Read more in Amy O’Connor’s InsuranceJournal.com article, Insurance Industry Use of Drone, Aerial Imagery Soared After 2018 Southeast Disasters.
Prepping for unexpected – though minor – winter weather
Excerpted from Lisa Talley’s and Carter Bumgardner’s PropertyCasualty360 article Preparation tips for the ‘average winter weather event’: When weather forecasters predict a massive winter storm on the horizon, it receives the population’s undivided attention — every single local TV and radio station will stop what it was previously covering to track its path and preparation will immediately commence. For businesses, that means ensuring all procedures are locked down in advance, so the chance of loss is minimized. But what about those lesser winter storms that slide under the radar? We’re talking about the ones that only bring a few inches of snow, ice or sleet. These types of storms, in some cases, can be just as impactful as the major one.