To a New Decade
Happy New Year, and welcome to 2020. We not only begin a new year, but a new decade that we are cautiously optimistic will bring prosperity to more Americans and hopefully a lessening of the political and socioeconomic turmoil the country seems to be enduring as of late. The previous decade has seen our beloved nation become decisively split politically. So much so that we are on the brink of presidential impeachment and the ousting of our elected Commander in Chief. This is an election year – many changes may lay ahead, and the current state of the world is calling for hesitation and extreme caution.
Fortunately, the specialty-lines life and health business on the home front is less wavering. The last 12 months have been filled with many business accomplishments as record numbers were set throughout the industry in 2019. The individual and group disability insurance markets continue to grow with increases in overall premium volume throughout most sectors.
The individual DI market remains healthy with the physician, dentist, attorney and white collar sales as hot as ever and more high-net-worth individuals seeking income protection and coverage on greater percentages of income. Expansion was also significant in the middle markets and amongst private equity and venture capital firms. Through broader marketing drives, greater automation and simplified underwriting platforms, insurance carriers are able further their DI sales outreach.
It is a wonderful time to be a disability insurance advisor. Consumer incomes remain strong, allowing for substantial insurance buying power. Historical carrier competition in the specialty markets has kept insurance rates relatively low which has also been fueled by low interest rates and a corporate need to write more premium volume, enhancing bottom-line figures for the appeasement of investors and boards of directors. However, we are seeing some recent adjustments in those sentiments as a slight hardening has begun across many lines of business.
Approaching the premium volume of the individual DI sector, the star of the 2019 disability market is guaranteed-issue multi-life (GSI) coverage which continues to be a popular commodity amongst law firms, medical and dental practices, hospitals and accounting firms. The GSI business is flourishing because the product line is quite attractive to the broker in terms of commission levels as well as to the consumer in terms of affordability and ease of acquirement. The coverage itself is a hybrid of sorts, allowing marketing access points for agents and brokers of differing specialties from individual sales to group sales as well as employee benefits producers. GSI coverage lacks the polarizing nature of traditional individual and group DI products.
Throughout the next 12 months, Petersen International will continue to enhance and evolve our many disability and medical insurance lines. We will also continue the expansion of our key person and contract protection life insurance lines. So get ready to be part of another exceptional year as we add value to your business. Let us know how we can help.