LIMRA Conference Highlights Consumer Education, Mortality Improvements, and Market Challenges
The LIMRA and LOMA Life and Retirement Conference in New Orleans focused on the life insurance industry's efforts to attract more consumers amid technological advancements like artificial intelligence and big data. Regulatory changes and fraud prevention were also key topics.
Industry leaders emphasized the persistent challenge of consumer misconceptions, particularly the significant overestimation of life insurance costs by younger generations.
A 2025 Life Insurance Barometer survey highlighted that many consumers, especially Gen Z and millennials, overestimate the cost of term life policies by up to ten times, contributing to a knowledge gap where 41% feel uninformed about life insurance products and underwriting complexities. The study also revealed gender disparities in knowledge, with nearly half of women feeling less informed compared to 31% of men.
Despite these challenges, life insurance ownership remains stable at 51%, largely supported by employer-sponsored coverage. Social media plays a growing role in consumer education, with 62% of all consumers and 80% of Gen Zers using platforms like TikTok and podcasts for information. Industry data shows a positive growth trend with a 3% increase in new annualized premium in 2024, reaching $15.9 billion, marking the fourth consecutive year of record-high premiums. However, the total policy count remained flat compared to 2023, reflecting a gap between consumer intent and actual purchase behavior.
Research also underscored the importance of advisor engagement in converting interest into sales, with nearly half of consumers emphasizing the need for education before purchasing. LIMRA's collaboration with Bain highlights how marketing and distribution partnerships can enhance profitability and consumer protection.
Additionally, a joint LIMRA and Society of Actuaries study identified improved mortality rates in group life insurance since 2016, despite pandemic impacts. This study analyzed data from 16 companies covering over 100 million policy exposures and found that mortality rates in group life are significantly lower than the general U.S. population.
Meanwhile, challenges in annuity distribution persist due to aging producer demographics, potential market disruptions, and pricing strategies. Firms like MassMutual are adopting succession planning and team-based recruitment to attract younger advisors, moving away from high-pressure sales models. Concerns about "irrational pricing" were discussed, referencing past market excesses and recent insurer financial difficulties such as PHL Variable Insurance's rehabilitation. Overall, the conference highlighted the balance between innovation, regulatory oversight, and market dynamics shaping the U.S. life insurance sector's current and future landscape.