The retirement landscape is changing now more than ever before.  In a recent survey of 2,500 American workers between the ages of 45 and 60, 61% they feared outliving their income. With the demise of employer sponsored pensions and the ever-present uncertainty of Social Security benefits, the part of retirement that is shouldering more of a burden is personal savings.  As it has always been, an Annuity is the only financial tool in the American marketplace that is able to guarantee income for as long as someone lives.

Annuities are financial products that create a pension for your retirement. You make one or more payments now, and in return, you get an income stream in the future. The standard annuity pays a lifetime pension. When clients purchase an annuity, it can help provide security and some peace of mind knowing that they are taking a very important step in planning their retirement and guaranteeing that they will never outlive their income.

In order to provide customers with the best rates, products, and services for their financial needs, http://www.wholesaleinsurance.net has added an Annuities resource section to the life insurance website. Users can now learn about annuities, compare the different types, and even obtain annuity quotes directly from the site.

For more information about the Wholesale Insurance Annuity addition, visit: http://www.wholesaleinsurance.net/blog/press-releases/annuity

NEW YORK, Nov 02, 2010 (BUSINESS WIRE) — Accenture (ACN 45.25, +0.26, +0.57%) has been selected to license and implement its life insurance policy administration application at Allianz Life Insurance Company of North America (Allianz Life), a leader in the North American life and annuity insurance industry and the U.S. subsidiary of Allianz SE, a global leader in the financial services industry. The Accenture Life Insurance Platform will be implemented to support Allianz Life’s annuity business.

Allianz Life has chosen to implement the Accenture Life Insurance Platform to help enhance its product development capabilities and improve customer service, while being able to more efficiently respond to the changing regulatory and business environment.

“The new system will enable us to continue to put our customers first in responding to their evolving needs in a rapidly changing environment. It will allow us to streamline our business processes and continue to bring innovative new products to market.” said Cathy Mahone, senior vice president of Enterprise Operations at Allianz Life. “We selected the Accenture Life Insurance Platform because of its ability to support leading-edge annuity products that are highly configurable. In addition, Accenture’s deep knowledge of the life insurance and annuity industry and its proven record in systems integration make it a strong partner for our business.”

“In today’s market, strong customer relationships are more vital than ever to the success of a financial services business,” said Mitchel Ludwig, a senior executive working in Accenture Software. “High-performing insurers like Allianz Life understand that rapidly and efficiently introducing new products to meet customer needs is a core competitive advantage that requires focus and development. This initiative will help Allianz Life improve its ability to roll out new products by simplifying product development and will help enhance customer experience through more consistent and efficient processes.”

About Allianz Life

Allianz Life Insurance Company of North America has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with nearly 155,000 employees worldwide. Based on its revenue, Allianz SE is the 20th largest company in the world (Fortune Global 500, August 2010).

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 204,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.

Accenture Software combines deep technology acumen with industry knowledge to develop differentiated software products. It offers innovative software-based solutions to enable organizations to meet their business goals and achieve high performance. Its home page is www.accenture.com/software.

SOURCE: Accenture

LANSING, Mich., Oct 11, 2010 (BUSINESS WIRE) — Jackson National Life Insurance Company(R) (Jackson) today announced the launch of LifeGuard Freedom Flex, the company’s first customizable guaranteed minimum withdrawal benefit (GMWB). Freedom Flex uses the same menu-driven construction that Jackson offers in its variable annuity products, giving investors the ability to build a personalized benefit based on their individual retirement planning objectives. The optional benefit is available for an extra charge, in addition to the ongoing fees and expenses of the variable annuity, within Jackson’s Perspective(SM) family of variable annuities.

The cost of the Freedom Flex benefit is based on the combination of features selected. Contract holders can choose from the following options:

5-8% Annual Bonus — Investors can grow their guaranteed withdrawal balance (GWB) by selecting an annual bonus ranging from 5 to 8 percent, in years with no withdrawals.(1) Quarterly or Annual Step-Ups — Contract holders can capture investment gains with annual or quarterly step-ups. Annual step-ups lock in the contract anniversary value, while quarterly step-ups lock in gains annually based on the highest adjusted quarterly contract value. Single or Joint Option — Clients can provide guaranteed lifetime income for themselves with the single option, or for themselves and their spouse with the joint option. 99 Investment Portfolios — Contract holders can choose from among 99 investment portfolios, without asset allocation restrictions.(2)

“For Jackson, product innovation is about delivering long-term value to the customer,” said Clifford Jack, executive vice president and chief distribution officer for Jackson. “We manufacture products that are appropriately priced and managed conservatively for risk. Furthermore, by allowing contract holders to choose from a variety of features and benefits, we promote a consultative financial planning process in which the adviser and client work together to address specific goals.”

Contract holders who wait 10 years (or until age 70, if later) to take withdrawals are eligible for a 200-percent GWB adjustment, which increases their guaranteed withdrawal balance to double what they invested in the first year.(3) When investors are ready to start taking retirement income, they may withdraw between 4 and 7 percent of their guaranteed withdrawal balance every year for life, depending on their age at the time of the first withdrawal.(4) Contract holders can also start and stop withdrawals as desired, giving them the flexibility to decide when to take income.

In conjunction with the Freedom Flex launch, Jackson has added BlackRock to its investment manager lineup. With more than $3 trillion in assets under management, BlackRock is the world’s largest asset manager.(5) The firm will manage the new JNL(R)/BlackRock Global Allocation portfolio, and will also subadvise the JNL/BlackRock Commodity Securities portfolio. BlackRock is the second new asset manager Jackson has added this year — in May, the company expanded its investment offerings with the addition of six American Funds Insurance Series(R) portfolios.

“With Freedom Flex, Jackson has brought the customization options of our variable annuity offering down to the living benefit level,” said Steve Kluever, senior vice president of product and investment management for Jackson National Life Distributors LLC. “In addition, we have added the world’s largest asset manager to our lineup, expanding access to a broad range of strategies across multiple asset classes, capitalizations and styles. The ongoing enhancements to our product offering demonstrate Jackson’s commitment to being responsive to the needs of advisers and their clients.”

“Jackson continues to demonstrate leadership in offering financial advisors and clients a truly world class investment platform combined with freedom and flexibility in asset allocation,” said Tim Stegner, managing director at BlackRock.

Advisers who wish to learn more about Jackson, the support offered by the company’s wholesaling team, or the optional features and benefits available within Jackson’s variable annuity products, can contact Jackson at 800/711-JNLD (5653) or visit www.jackson.com.

About Jackson National Life Insurance Company

With $94 billion in assets (IFRS)*, Jackson National Life Insurance Company (Jackson) is an industry leader in variable, fixed and fixed index annuities. The company also offers life insurance and institutional products. Jackson markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, financial institutions and independent insurance agents. Jackson’s subsidiary, Jackson National Life Insurance Company of New York(R), similarly markets products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management and retail brokerage services. For more information, visit www.jackson.com.

*Jackson has $94 billion in total IFRS assets and $84 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 6/30/10).

1. In years no withdrawals are taken during the bonus period, which lasts for the first 10 contract years. 8% annual bonus not available on Joint Option.

2. Jackson limits the number of subaccounts that can be elected at any one time to 18.

3. If no withdrawals are taken on or prior to the guaranteed withdrawal balance (GWB) adjustment date, the owner is eligible for the GWB adjustment. The GWB adjustment date is the later of 1) the 10th contract anniversary following the benefit’s effective date 2) or the contract anniversary on or immediately following the owner’s (or older joint owner’s or younger covered life’s) 70th birthday. At election, the GWB adjustment will be equal to 200% of the GWB subject to a $5 million maximum.

4. On the contract anniversary on or immediately following attained age 59 1/2 the for-life guarantee becomes effective.

5. Source: BlackRock, as of 3/31/10.

Variable annuities are issued by Jackson National Life Insurance Company (home office:Lansing)(home office:Michigan) and distributed by Jackson National Life Distributors LLC, member FINRA. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments where applicable. State variations may apply. Please contact your representative or Jackson for more information.

Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company and do not apply to the principal amount or investment performance of the separate account or its underlying investments. Variable annuities involve investment risks and may lose value. A variable annuity is a long-term, tax-deferred investment vehicle designed for retirement. An annuity’s earnings are taxable as ordinary income when distributed and, if taken before age 59 1/2, may be subject to a 10% federal tax penalty.

A variable annuity is a long-term investment vehicle. Investing in a variable annuity involves investment risks, and your investment may lose value. Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world’s leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for more than 160 years and had $463 billion in assets under management as of June 30, 2010. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

SOURCE: Jackson National Life Insurance Company

http://www.wholesaleinsurance.net/

NEW YORK–(BUSINESS WIRE)– New York Life Insurance Company, America’s largest mutual life insurer, today announced strong gains in sales of life insurance, income annuities, long-term care insurance, and mutual funds, as well as an increase in the field force for the first six months of 2010.

Surging Life Insurance Sales

Individual life insurance sales increased 47% through June, compared to an all-time record for sales in the first six months of 2009. For the most part, this growth is being driven by increased sales of both permanent insurance and term products, including the company’s Custom Whole Life product, an innovative form of whole life that allows consumers to choose how long they pay premiums.

“This outstanding sales performance validates that consumers’ behavior around their financial decisions has changed. In 2009, we saw that New York Life’s sales of life insurance products reflected the need among Americans for products that offer safety and were backed by a trusted company with the inherent strength of New York Life, with its more than $15 billion in Surplus capital. Consumers also saw the added value of having a knowledgeable, trained agent to work with. These trends have continued in 2010. The first half of the year continues to show that families and businesses are putting their money where the guarantees are and where the stable returns are,” said Mark Pfaff, executive vice president in charge of U.S. Life and Agency. “Even further, consumers who had turned to New York Life to help them overcome the economic hardship felt in 2009 are recognizing more and more that life insurance provides a solid foundation for family financial plans.”

“Our sales growth is being driven by the agent force of more than 11,500 financial representatives in communities across the country, with first-half life insurance sales through agents up 38% over the 2009 period*. As a result the company continues to gain market share, which now exceeds 9% of the total U.S. life insurance market,” added Mr. Pfaff. According to an industry source New York Life has the largest share of new life insurance premium in the nation.**

New York Life clients are utilizing whole life insurance for the death benefit it provides, as well as the living benefits afforded by the product’s cash value, which help consumers meet retirement, education or other cash needs. And not only are sales of life insurance increasing: Policyholders are also placing more money into existing policies to build additional guaranteed cash value for future needs.

New Six-Month Record for Income Annuity Sales; Long-Term Care Insurance Sales Rise 10%
Pre-retirees and retirees continue to value the benefits of lifetime income annuities, and New York Life –the market share leader in these fixed immediate annuities – achieved a new record in six-month sales of $870 million, led by strong sales through its agents and Third Party distribution.

“After the economic crisis that began in late 2008, the nest eggs of many Americans were dealt a serious blow and they realized their retirement income needs were not going to be met. In this environment, New York Life’s income annuity, which we call guaranteed lifetime income, became even more valued by providing a regular, guaranteed stream of income to those who saw their income in retirement drop. Clearly, Americans seeking safety and security to meet their retirement income needs has continued in 2010 with strong sales of income annuities,” said Chris Blunt, executive vice president in charge of Retirement Income Security. “New York Life remains the top seller of income annuities because our message of financial strength and stability is resonating, our brand has never been more valued, and our financial strength is unsurpassed, with the four major rating agencies recently reaffirming our top financial ratings. This combination of attributes makes New York Life the undeniable choice for meeting at least basic income needs in retirement.”

Even further, as pre-retirees recognize the increased health care issues that may come along with living longer, they are making the wise decision to protect their assets by purchasing long-term care insurance, and the company’s sales of the product are up 10% over last year. New York Life reported earlier this year that for the sixth consecutive year, it will pay a dividend to its LTCSelect Premier long-term care insurance policyholders. In addition, New York Life is one of only a few insurers that has never raised premium rates on in-force policies.

“Reputation is key in the long-term care area, and New York Life has worked hard to avoid rate increases while offering policyholders a dividend, sending the message that our prudent approach to managing policyholder funds remains a top priority. The strong sales growth in the first half of 2010 is evidence that consumers recognize that New York Life’s mutual structure keeps us uniquely aligned with our policyholders and makes us the company of choice for including long-term care insurance in a well-designed, comprehensive retirement plan that can help preserve a legacy and protect income,” said Mike Gallo, senior vice president, Long-Term Care Insurance.

Mutual Fund Sales Increase 55% in First Six Months

Sales of New York Life’s mutual funds (MainStay Funds) totaled more than $5 billion in the first half of the year, with strong performances from Third Party channels accounting for more than $4 billion of the total. First-half net sales of $2.3 billion are on a record pace for the year.

“We continue to have good success with our Third Party distribution strategy, complementing our core distribution system of career agents. Our ability to achieve this was helped by the strong line-up of funds managed by our investment management subsidiary,” Mr. Blunt said.
Increasing Field Force Across the Country

New York Life is hiring in communities across the country, and through June 30^th the company’s field force is up more than 5% over 2009, which was a record year for recruitment of agents.

“Job seekers recognize that joining a powerful brand like New York Life gives their business instant credibility, and as a result our pipeline for new agents is strong, with recruitment continuing to expand this year,” said Mr. Pfaff.

“At a time when families across the country need sound and trusted guidance with their insurance and financial needs, New York Life agents are standing tall as the industry professionals families are looking to for help with solutions. New York Life offers job seekers the opportunity to provide vital insurance protection and financial guidance to people in their communities while also enjoying flexibility, independence and significant income potential — all while representing a company with unsurpassed financial strength, a remarkable 165-year history, and outstanding training.”

New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States*** and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments**** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Please visit New York Life’s Web site at www.newyorklife.com for more information.

*New York Life counts Agency insurance sales of single premiums at 50%.

**Source: LIMRA International, first quarter 2010 sales survey; using recurring premium and 100% of single premiums.

NEW YORK, June 14 /PRNewswire/ — In a new survey aimed at better understanding the financial outlook and retirement needs of Americans, Ipsos found that more than half (60%) of 1,082 adults aged 25 and older were trying to meet basic financial needs and savings goals while only one in five were actively building savings and investments for added financial security and to improve their lifestyles. This data suggests that the much discussed corporate economic recovery has yet to trickle down to Main Street.

In fact, the ongoing emphasis on safety and security seems particularly evident considering that, despite exceptionally low yields, the financial product used more than any other was traditional savings (71%), with life insurance, the next closest, used by half (50%).

When discussing their retirement outlook, a majority of respondents said they expect to retire between the ages of 62 and 70 and anticipate being in retirement for over 15 years (19.6 years on average). Eight out of ten said they believe that Social Security will not provide enough income to live in retirement.

Additionally, 38% of those surveyed feel unlikely they’d have enough money to cover basic monthly expenses in retirement and half feel unlikely they could maintain their standard of living. This suggests that many Americans may be overly optimistic about retirement given their stated estimates for basic monthly expenses in retirement. Among those surveyed, current retirees said they need $2,857 per month and those not yet retired said they’ll need $3,987. Simple math suggests that those not yet retired will need over $935,000 to cover basic monthly expenses over the course of their projected retirement.

Despite the disconnect between what Americans think they’ll need in retirement, and what they actually have, a majority recognize the necessity for investments that provide a fixed monthly payout in retirement.

To this end, and given discussions in Washington about the possibility of a rule change that would allow annuities in 401(k) plans, those surveyed were asked about the potential for a fixed-rate annuity being added to the investment options available in 401(k)s. Almost three quarters (73%) said they would like having this option available and, most compelling, 83% of those ages 25-34 felt the same way. While few (14%) felt they had a very high level of knowledge about annuities in general, 60% felt this 401(k) annuity option would be good for retirement.

While responses to the Departments of Labor and Treasury’s Request For Information on the proposed rule changes surrounding the use of a guaranteed income component in 401(k)s have been diverse, this nationally representative survey suggests that the American people are not only open to the idea of devoting a portion of their 401(k) to an annuity product that would provide a guaranteed income in retirement, but a strong majority would embrace it.

These are some of the findings of an Ipsos poll conducted April 21 to May 4, 2010. For the survey, a national sample of 1,082 adults aged 25 and older from Ipsos’ U.S. online panel were interviewed online. A survey with an unweighted probability sample of 1,082 and a 100% response rate would have an estimated margin of error of +/- 3 percentage points 19 times out of 20 of what the results would have been had the entire adult population aged 18 and older in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

News Releases are available at: http://www.ipsos-na.com/news/

Source: Ipsos Marketing

SPRINGFIELD, Mass., June 17 /PRNewswire/ — MassMutual’s Retirement Services Division will present a live webcast for retirement plan intermediaries and sponsors entitled “Liability-Driven Investing for Small and Mid-Size Plans ($20M – $100M)” on Tuesday, June 29 at 2 p.m. ET. The live one-hour webcast will be moderated by Charles Ruffel, founder and director of PlanSponsor magazine, and presented by Marc Condon, assistant vice president and actuary, and Doug Steele, director, investment management for MassMutual’s Retirement Services Division.

The webcast will explore the theory and practice of liability-driven investing (LDI) and why it makes sense right now. Topics will include how to reduce volatility in annual pension funding, how to manage pension assets in the context of liabilities, and how to implement cost-effective strategies for achieving more predictable plan funding levels. A Q&A will be conducted at the close of the session.

“Liability-driven investing has been eagerly embraced by large pension plans and, at MassMutual, we believe LDI can be a viable solution even for smaller retirement plans with $20 million to $100 million in assets,” says Bill Silvanic, FSA, senior vice president and chief financial officer for MassMutual’s Retirement Services Division. “We are seeing strong interest in LDI and this webcast will give retirement plan intermediaries and sponsors important information to help them determine if LDI should be considered as a solution for their plan needs.”

There is no fee to attend but advance registration is required. Intermediaries and plan sponsors may register by visiting http://ww2.plansponsor.com/events/MassMutualLDI. For more information about MassMutual Retirement Services, please contact your advisor or call MassMutual at 1-866-444-2601.

About MassMutual

MassMutual’s Retirement Services Division has been serving retirement plans for more than 60 years. It offers a full range of products and services for corporate, union, nonprofit and governmental employers’ defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately one million participants.

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company’s strong and growing network of financial professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) [of which Retirement Services is a division] and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, Inc., member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.

For more information, visit massmutual.com.

Copyright © 2010 Massachusetts Mutual Life Insurance Company (MassMutual) and affiliates, Springfield, MA 01111-0001.

WEST CHESTER, Pa., June 14 /PRNewswire-FirstCall/ — With the goal of expanding its available suite of solutions to help consumers better prepare for retirement, ING introduced two new registered fixed-index annuities to the marketplace today. ING Select Multi-Index 5 and ING Select Multi-Index 7, both modified single-premium deferred annuities issued by ING Life Insurance and Annuity Company, offer an alternative to traditional fixed annuities through an index strategy that can link a client’s potential for annual growth to the performance of up to four well-known market indexes.

Investors who purchase ING Select Multi-Index 5 or ING Select Multi-Index 7 are given the choice to link their annual interest crediting, in part, to any combination of the S&P 500 Index®, S&P MidCap 400 Index®, Russell 2000 Index® and EURO STOXX 50 Index® as well as a fixed-rate strategy. Investors are not invested directly in these indexes.

“Now more than ever, baby boomers are being cautious with their retirement savings, but many want more upside potential than what they can earn from many traditional fixed investments without risking their principal,” according to Lynne Ford, CEO of ING Financial Solutions, “ING Select Multi-Index 5 and ING Select Multi-Index 7 give both downside protection and some upside potential to benefit from market gains. With multiple indexes and the ability to choose the mix of how the money is allocated, these products can fit well with a variety of retirement portfolios,” she added.

In late 2009, ING’s U.S. operations merged its annuity and rollover businesses into a new business unit called ING Financial Solutions. ING Select Multi-Index 5 and ING Select Multi-Index 7 were developed as part of a suite of simpler retirement solutions began rolling out earlier this year. Since then, several new solutions-oriented products, including a multi-manager mutual fund custodial IRA account, a registered fixed annuity, and a lower-cost variable annuity, have been introduced.

ING will still continue to offer non-registered fixed index annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York. According to Ford, the new products complement the company’s current fixed-index offering. “The expertise we have gained in the non-registered fixed-index market has allowed us to identify new opportunities for our registered products where our non-registered products are not being sold. Offering registered fixed-index annuities gives us products that we can make available to many banks and full-service brokerage firms, which are looking for more conservative solutions for their clients in this challenging environment.”

For more information, please contact an ING Financial Solutions wholesaler, the ING Financial Solutions Sales Team at (800) 344-6860, or ING Financial Advisers at (866) 201-3693.

ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries. With a diverse workforce of about 107,000 people, ING is dedicated to setting the standard in helping our clients manage their financial future.

NEW YORK, June 7 /PRNewswire/ — Post-economic downturn, disciplined cost containment and operations management in all aspects of life and annuity businesses offers carriers a key competitive advantage, according to Deloitte’s “Life Insurance Operations (LIONS) and Annuity Contract Expense (ACES) Benchmarking” studies, released today.

“Despite the relative maturity of insurance as an industry, the 14th Annual LIONS and ACES studies reveal that growth through cost containment and efficiency remains a real possibility for carriers that commit to identifying and executing on strategic opportunities,” said Joe Guastella, Deloitte’s global insurance practice leader.  “The economic downturn placed an even greater focus on the role of managing the costs associated with doing business in all industries, with particular importance to insurance.”

“When you look at life insurance and annuities, the path for growth aligns closely with the impending baby boomer retirement trend.  In order to execute on this once in a century opportunity, carriers should review operations and expenses now and make the necessary adjustments,” said Richard T. Roth, head of Deloitte’s global benchmarking center. “When viewed in this context, the urgency to act becomes clear.”

LIONS survey findings include:

• Economies of scale in life insurance that are in use are more elusive than anticipated; other factors such as choice of service model, call center utilization and degree of automation are more important to expense levels.
• Requirements costs continue to be a significant portion of life insurance new business expenses. Low-cost performers have a new business processing expense of just $1.07 per $1,000 of new business face amount, 10 percent lower than the median.  New business service-delivery times are also shorter among the low-cost performers across all face amounts.
• Opportunities remain for savings through outsourcing, even in mature areas. Low-cost performers have an 11 percent lower in-force administration processing expense per in-force administration transaction versus the median and are pioneering the use of interactive voice response (IVR) technologies.
• Linking total information technology (IT) spend to strategic objectives encourages focus. Both median and low-cost performers are willing to spend more on technology to drive down other costs and improve quality and service.
• Low-cost performers spend 29 percent less on finance than the median.

ACES survey findings include:

• Marketing, product and distribution (MPD) expense continues to grow, representing the largest share of adjusted line of business expense at 38 percent. As a percentage of expense, low-cost performers spend five times more than the median on developing and maintaining products, but 11 percent less than the median on overall MPD processing.
• Over the last five years, total annuity new business unit costs have increased at an annual rate of 1.8 percent. Variable annuity low-cost performers spend 11 percent less than the median on new business, while fixed annuity low-cost performers spend 38 percent less.
• With respect to call center staffing models and tools, variable low-cost performers spend 17 percent less than their median counterparts and are doing well in leveraging self-service opportunities and utilizing e-service at much higher levels than the median.
• Fixed annuity growth for the median was more than 150 percent, and in some organizations, the growth exceeded 200 percent. The move to fixed annuities is not a result of new organic growth, but rather due to significant turnover of existing portfolios.
• Corporate overhead represents the second largest share of adjusted line of business expense at 33 percent.
• Enhanced technology decision-making processes could enable better competitive value. IT cost as a percentage of adjusted line of business expense is twice as high for low-cost performers as it is for the median. However, low-cost performers invest much less on discretionary spend than the median, and considerably more than the median on infrastructure and maintenance.

Executive summaries of the study results are available at www.deloitte.com/us/lifeinsurancemetrics andwww.deloitte.com/us/annuitymetrics.