LIMRA CEO sees an industry beating back challenges as sales soar
The life insurance industry has plenty of challenges, LIMRA CEO Dave Levenson acknowledged, but more reasons for optimism.
Start with sales. Both life insurance and annuity sales are setting records in 2025, fueled by intense competition and smart product development.
Sales will certainly dominate discussions at the LIMRA 2025 Annual Conference in Kissimmee, Fla. Levenson gave his annual “state of the industry” presentation early Monday morning.
He spoke with InsuranceNewNet prior to the conference. Total annuity sales increased 8% year over year to a record high $119.5 billion in the second quarter, according to LIMRA’s recently released U.S. Individual Annuity Sales Survey.
Likewise, new annualized premium increased 13% to $4.5 billion in the second quarter, according to LIMRA’s retail life insurance sales survey results, released Thursday.
The evolution of fee-based annuities and in-plan offerings bring the potential for even stronger sales, Levenson said.
“The potential is significant,” he explained. “There's over $10 trillion in retirement plan assets, and very, very little of that is in annuity products. And when you think about retirement today and retirement tomorrow there’s nothing more important than having some sort of protected lifetime income.”
A plan for artificial intelligence
Artificial intelligence remains one of the fastest-growing areas of the life insurance industry. And LIMRA and LOMA are helping executives and insurers to navigate a proactive course.
The AI Governance Group, established in 2024, is producing a variety of best practices to help guide the industry through a period of rapid integration of AI.
There are 50 members companies and 130 executives participating in the AI group, Levenson explained. In February, the group launched its Turnkey Templates & Strategic Guides, resources designed to help companies make informed decisions regarding AI adoption.
AI is revolutionizing the insurance industry by enhancing efficiency, accuracy, and customer experience through applications like risk assessment, fraud detection, claims processing, and personalized product offerings.
More is on the way, Levenson said, as the governance group tries to keep pace with AI.
“We really believe that artificial intelligence is going to be transformational for every industry, including our industry, and we at LIMRA LOMA want to be on the front end of that and helping our members navigate to change,” he said.
Shrinking producer base
One area of constant concern across the insurance industry remains the producer funnel. There just isn’t enough young people becoming agents and advisors to help offset the aging out of the older generation.
LIMRA has a three-pronged approach to helping members bolster their producer ranks, Levenson said: recruiting strategies, training and support, and technology solutions.
“This is a real issue, and it's an issue for advisors who specialize in insurance, and it's an issue for advisors who are generalists as it relates to wealth management,” Levenson said. “I just think, relative to the needs of the demographics in this country, we just do not have enough financial professionals.”
It is also another area where artificial intelligence can help, he added. AI can help with recruiting, training, and making it more efficient for prospecting and reaching clients.
“I also think there could be some AI tools that enhance solutions for those that work directly with consumers,” Levenson concluded.
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