Insurance

The longevity gap refers to lower longevity rates in the United States relative to other developed countries. Critics of the U.S. healthcare system point to the gap as a characteristic of the flawed health insurance system. However, a recent New York Times article discusses the research of Samuel H. Preston and reveals some of the errors contained in the logic of critics of the U.S. health system. Source: New York Times Full Story

Findings from a recent Gallup poll suggest that annuity ownership in the United States is dominated by middle- income households and individuals. Eighty percent of annuity owners have income of less than $100,000, while only four percent of annuity owning households have incomes in excess of $200,000. Other poll findings include: Almost half of the respondents have household income less than $50,000. Seven out of ten annuity owners are retired. The average age of annuity owners is 70. Women...

In contrast to Metlife , the Hartford Financial Services Group is shifting its business away from annuities. Hartford's new CEO recently announced that the company will be focused on developing a core insurance franchise, and that the annuity business will be a somewhat peripheral concentration: As it recovers, Hartford will de-emphasize its former annuity focus and be an "insurance franchise with a concentration in the annuity business," Ayer said. Source: Wall Street Journal Full Story

The business of selling a life insurance policy when it is no longer needed is poised to become a very large industry--particularly as retirees seek to tap into all types of assets for sources of income . According to a recent New York Times article, the life settlement industry could grow to as much as $500 billion. While this figure represents a small portion of the $26 trillion in life insurance outstanding, securitization of life settlements could prove to be a meaningful source of growth...