According to Rothman Research, a leading research firm specializing in the insurance services
industry data, many insurance companies
are struggling to deal with loss of business as the financial sector is faced with a very difficult industry atmosphere in America. There is still tension in the industry about the massive $182.3 billion dollar AIG bailout. This atmosphere is likely to last at least until mid-2010. If progress occurs, the second part of the year should see the economy start to rebound more quickly.
Poor credit and equity markets lead to fewer losses anticipated in investments in the near future. This means premiums are dropping slowly. A dip in underwriting reserves have contributed to the industry tensions which are currently felt. AIG and Travelers Insurance Companies Inc. are both the focus of the Rothman Research report on the subject.
AIG is not recovering as quickly as first anticipated because the poor economy continues to hamper it. In addition, having to make regular repayments to the government and having no reserves have made the recovery process difficult. The last 3 months of 2009 saw AIG helping General Insurance with $2.3 billion from the loss reserves. A September 2008 injection of $85 billion from AIG gave it an almost 80% share in the company.
The fourth quarter also saw the Domestic Life Insurance & Retirement Service undergo a restructuration and reemerge as SunAmerica Financial Group. They also made major changes in how they deal with business relationships and their sales distribution channels. The new group is poised to be at the forefront of their industry worldwide. They have a strong US life and annuity program in place as well as a variety of other businesses.
The Travelers Companies Inc. is, in reality, a holding company with its own subsidiaries. They offer commercial insurance, personal property insurance, casualty coverage and other services as they relate to government departments, businesses and other associations. Its main segments include Business Insurance; Personal Insurance: and Financial, Professional and International Insurance. The portion which offers Business Insurance provides casualty and property insurance, as well as other insurance type services in the United States. The various offerings of the company include credit-based processes.
Given more time and the right conditions, these and other firms will improve even more significantly.
One of the country's top term life insurance companies
, ING Life Companies, has lowered its price for much of its term life insurance product line being sold through ReliaStar Life Insurance Company and ReliaStar Life Insurance Company of New York. This strategic move is in order to help maintain its strength in that category of products. Other changes to the ING TermSmart product line have been made with this same goal and include:
- offering a 25 year term policy as well as the 10, 15, 20 and 30 year policies already available
- providing an option to reduce premiums on plans that have a value of $500,000 to $999,999
- allowing policies to be issued to people up to 5 years older than current guidelines.
The company's American CEO Butch Britton states, "ING remains committed to being a leader in this market. These moves...will help us keep our extremely competitive position and help us provide protection to more middle income Americans." Statistics on the group of companies show that it is the 2nd largest life insurance provider in the country. Some of the other products sold by ING include universal life, indexed universal life, variable universal life and return-of-premium term life.
ING sells their line of insurance products through independent insurance agents and online agents. ING Life Companies provide support in the form of a dedicated web site, online tools and custom marketing tools. They strive to make selling their products an easy undertaking for agents.
TermSmart products can be upgraded to permanent insurance until age 70 or 5 years before your product ends, whichever occurs first.
About The ING Group
Originally a Dutch company, ING is now worldwide. It offers financial products and services to consumers and corporate clients. They have over 85 million clients from over 40 countries. The 115,000 strong staff is committed to promoting the ING goal of providing excellent assistance in the financial future of each client.
The US division offers investment options, life insurance products, retirement plans, banking, employee benefits, financial planning and much more. With over 30 million clients in the country, it is in the top of each field it works in.
The ING TermSmart policy, one of the newest additions to the ING line-up, may not be for sale in all states and may include state-specific variations. In the state of New York the only products that can be sold are through the ReliaStar Life Insurance Company of New York and TermSmart is not included. Guarantees on products are based on the strength of each issuing company, which is uniquely responsible for the products sold under its name.