Lincoln Financial, which has ambitious growth plans for its linked-benefit and term products, has hired corporate actuary Stafford Thompson Jr. as senior vice president, Life Product Management, in charge of the company’s individual life business.
Thompson, a product development, pricing and reinsurance expert with 23 years of industry experience, will oversee Lincoln’s popular universal life franchise MoneyGuard and the company’s Executive Benefits product suite, the company said.
Based in Greensboro, N.C., Thompson reports to Michael J. Burns, senior vice president and head of Life Solutions. Thompson replaces Michael Parker, who left the company last year to pursue other interests.
“Stafford is a proven leader with deep industry experience and expertise who will help us continue to expand, diversify and enhance our comprehensive solution set, and innovate to reach and serve clients in our core and emerging markets,” Burns said in a news release.
Thompson previously was a marketing actuary at SCOR Global Life Americas. He joins Lincoln Financial at a time when the company plans to broaden its life portfolio and reprice policies for principles-based reserving, which affects how insurers set aside reserves.
Thompson is a fellow of the Society of Actuaries and a member of the American Academy of Actuaries. He is a board member and former president of the International Association of Black Actuaries.
Facing a low interest rate environment, Lincoln Financial, like many other insurers, has steered away from products with longer-term guarantees toward shorter-term guarantee products, which are less capital intensive.
Linked-Benefit Products, Term Life Areas of Growth
Two of the company’s most promising life insurance growth opportunities rest with MoneyGuard and with term products, company executives said.
MoneyGuard, a life insurance policy with linked long-term care benefits launched in 1988, has sold well because of the brand’s ability to innovate, evolve, expand and deepen its distribution strength, Burns said in a conference call with analysts.
An estimated 10,000 baby boomers entering retirement every day and the decline of the standalone long-term care market has also helped create demand for MoneyGuard.
MoneyGuard has achieved nearly 60 percent market share, Burns said.
In the term segment, Thompson is expected to put his skills to work developing new products with lower face amounts to reach untapped customers through “digital efficiencies,” Burns said.
Thompson holds a bachelor of science degree in mathematics with a concentration in actuarial science from Florida A&M University.
Since 2012, Lincoln has worked itself into a leading seller of term life. The carrier captured an 8 percent share with face amounts larger than $500,000, but the potential for growth lies with selling policies with lower face amounts.
Growth expectations for Lincoln’s life insurance business over the next few years are in the low- to mid-single-digit range, Lincoln executives said.
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].
© Entire contents copyright 2017 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.