Swiss Re predicts a China-led insurance market rebound
However this rebound will not come without significant hardship in the short and medium-term. With world GDP contracting 4.1%, one of the largest drops in close to a century (the Great Depression of 1929 to 1932 resulted in a 15% drop), several industries have been left reeling and insurance is not an exception.
Overall, the company estimates that global insurance premiums will grow by 3.4% in 2021 following a 1.4% fall in 2020. Societal resilience, which Swiss Re emphasised in the year, will be crucial, with the US, the UK and Japan expected to see significant fiscal buffer drains in the future.
A time for action
Navigating out of these straits, believes Jerome Jean Haegeli, Swiss Re Group Chief Economist, will be contingent on industry dynamism, reinvigoration and smarter planning:
“For sustainable economic recovery, we need a policy reset. Public policy should focus on areas such as infrastructure, technology and climate. Building new sustainable infrastructure will have a significant impact on GDP growth.
“In addition to smarter spending, policymakers should make more use of public-private partnerships and establish the operational and regulatory frameworks to enable greater participation of private-sector finance, including insurers’ assets, in the real economy,“ he said.
China will lead the way
Despite the considerable damage wrought by the pandemic, Swiss Re notes that non-life insurance demand in advanced markets fared better across Q1 and Q2 than expected. The company anticipates an average annual global growth recovery rate of 3.6% in 2021 and 2022.
The life insurance market has been hit harder: a 4.5% contraction and numerous instances of job loss and reduced purchasing power. Regardless, Swiss Re still anticipates a 3% recovery in 2021 spurred on by the Asian market.
According to this projection, China will lead the world with a 10% growth rate in non-life particularly in the health insurance sector, and 8.5% in life insurance.
SIMON Insurance expands its annuities platform
The New York-based insurance and annuities services company, SIMON, has announced the launch of its expanded annuities service via its new digital platform, called LiveWell.
The valuable annuity service is issued by the Midland National Life Insurance Company and administered by Sammons Retirement Solutions - a division of Institutional Group, as the first-to-market. More carriers are cited to join SIMON’s variable annuity marketplace over the next few months.
The move means financial professionals can now find and explore Sammons’ LiveWell Variable Annuity solutions, access product-specific marketing literature, and run powerful allocation and income analytics within the product—all directly within SIMON’s interactive platform.
Tax-deferred growth for the retired
According to reports, variable annuities are favoured by savings markets because they can help accumulate assets for retirement with tax-deferred growth. They also offer agile and flexible tax-free reallocations as well as optional death benefits for heirs.
Frequently used as part of a long-term retirement planning strategy for tax-efficient growth, VAs are now available in SIMON’s Marketplace alongside fixed indexed annuities, fixed annuities, and structured annuities.
The SIMON annuities platform also provides financial professionals with centralised access to the tools and resources they need to analyse marketplace products based on their clients’ risk profiles and investment horizons.
The platform also allows investors to:
- Explore various rider illustrations
- Leverage powerful allocation analytics
- View fund options and their performance statistics
- Dive deep into the historical performance of allocations and funds
Speaking about the launch of LiveWell, Melissa Scheuerman, VP of Business and Sales Development at Sammons, explained, “Everyone seeks custom solutions today—from news feeds on our cell phones to grocery delivery services, and retirement planning is no different. Products need to offer flexibility, and professionals need intuitive tools at their fingertips to analyse and manage products that offer that flexibility.
“Our partnership with SIMON illustrates a commitment to offering scalable annuity solutions to professionals serving a growing population of retirees.”
Scott Beshany, Chief Distribution Officer at SIMON, added, “With game-changing analytics for this product class, variable annuities are a natural new addition to SIMON’s product lineup. Our Marketplace is now able to deliver a more holistic product experience, and we look forward to driving a better, more powerful VA product experience for financial professionals.”