Weekly Newsletter - 11.27.2024

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INDUSTRY INSIGHTS 🌐

US and China Life Insurance Growth Driven by Savings Products

According to Swiss Re's latest sigma report, life insurance premiums are expected to grow at an annual rate of 3% in 2025 and 2026, more than doubling the growth rate of the past decade. This growth is fueled by increased demand for savings products, particularly in the United States and China, where individual annuity sales are projected to exceed US$400 billion in 2024. The appeal of long-term savings solutions is also strong in China, supported by anticipated reductions in guaranteed interest rates.

In advanced markets, a shift from fixed annuities to index-linked policies is expected as central banks lower interest rates. This trend is already evident in Europe, with significant growth in unit-linked products in Italy and France, and is anticipated to expand to the US by 2025. The life risk protection segment is projected to grow by 2.7% annually, slightly below its long-term trend, as demand remains less sensitive to interest rate fluctuations.

OmniGen AI Shakes Up Underwriting at Canara HSBC Life Insurance

Canara HSBC Life Insurance has unveiled OmniGen AI, a cutting-edge generative AI solution built on AWS Bedrock, designed to transform the underwriting process. Acting as a co-pilot for underwriters, OmniGen AI meticulously analyzes underwriting guidelines, risk profiles, and risk model outputs. This innovative tool delivers swift, precise decisions, complete with rationale and references, significantly reducing human biases and errors. By transitioning from traditional human-created underwriting manuals to AI-generated frameworks reviewed by experts, Canara HSBC is setting a new benchmark in innovation and customer experience.

This solution enhances consistency and accuracy in decision-making, reinforcing Canara HSBC's commitment to providing reliable and effective insurance solutions. By integrating Generative AI into their underwriting processes, the company aims to lead the charge in driving meaningful innovation within the life insurance industry. This strategic move is expected to improve operational efficiency, reduce costs, and deliver better customer outcomes.

The scalable model created by OmniGen AI promises quick and consistent decisions, benefiting both customers and the sales force. This initiative not only aims to reduce backend workload but also to foster growth in business value and market penetration, ultimately enhancing the overall customer experience.

INDUSTRY NEWS 📰

Wade Seward Joins SBLI as Chief Distribution Officer

SBLI has appointed Wade Seward as Chief Distribution Officer to enhance its sales efforts. With over 30 years of experience in insurance distribution, Seward will lead SBLI's Independent Distribution and Direct Sales. His expertise is expected to drive growth and expand SBLI's broker and partner opportunities.

One Inc and U.S. Bank Enhance Insurance Payment Solutions

One Inc and U.S. Bank have partnered to enhance payment solutions for insurance carriers and policyholders. This collaboration integrates U.S. Bank's financial capabilities with One Inc's digital payment solutions, streamlining claims and premium processes. The partnership aims to modernize the insurance payment landscape, offering faster and more efficient services.

WealthChoice Enhancements Offer Growth and Security with New Strategies

United Life Insurance Company has introduced new crediting strategies for its WealthChoice Fixed Indexed Annuity, enhancing growth potential and stability. The S&P 500 Dynamic Intraday TCA Index offers guaranteed rates, appealing to clients seeking risk-managed performance. These enhancements aim to meet diverse retirement planning needs with innovative financial solutions.