Conning–Growing Affluent Market Opportunity for Life Insurers

Insurance Weekly News

By a News Reporter-Staff News Editor at Insurance Weekly News -- The recent very high rate of growth of the Affluent Market is a significant opportunity for life insurers, according to a new study by Conning.

"Affluent households-those with more than $100,000 income-grew by 30 percent between 2012 and 2016," said Mary Pat Campbell, a Vice President, Insurance Research at Conning. "While still the smallest income segment in number of households, the Affluent Market has significantly more financial resources than the Middle Market and is able to purchase a wide variety of financial products. However, financial services firms are very focused on the segment, and insurers face strong competition for Affluent Market share."

The Conning study, "2018 Life-Annuity Consumer Markets Annual" reviews the consumer markets for life insurers with focused analyses of demographic segments, generations, and income groupings. The study also includes Conning's estimates of the opportunities for insurers through an analysis of financial needs and resources for the U.S. consumer.

"While Emerging Affluent households-those with incomes of $100,000 to $199,999-have grown by 23 percent, the growth of the Mass Affluent market with $200,000 and more in income was a stunning 61 percent from 2012 through 2016," said Steve Webersen, Head of Insurance Research at Conning. "While the Affluent Market leads in life insurance ownership, our analysis shows that this market still has a large protection gap, signaling unmet need and insurer opportunity. Of course, Affluent Market retirement and protection needs are more complex, so insurers need a sophisticated range of products to compete successfully here."

"2018 Life-Annuity Consumer Markets Annual" is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.