Insurance Blog

American life insurance policy trends have shifted

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US adults are taking this coverage more seriously and have been considering it more frequently.
The pandemic crisis has forced millions of Americans to consider their finances and their mortality, creating a striking shift in life insurance policy trends across the country.
This changing direction has been particularly strong among younger adults, parents and minorities.
American young adults, those with kids and minorities have all been taking a closer look at their finance management. Among those examinations has been a boost to life insurance policy trends, suggests a new Unum survey. The research showed that since the start of the COVID-19 pandemic crisis, 41 percent of adults say they have adjusted the way they handle their finances. Almost one quarter (22 percent) of those adults are also thinking of adding or increasing their life coverage.
The pandemic has forced many American adults to think very differently about their financial lives. By the start of the crisis, most did not know how much coverage they needed. Moreover, another 45 percent either don’t have a plan or don’t know if they have one.
The pandemic has altered the lives of Americans right down to life insurance policy trends.
“The pandemic changed our lives, and it’s not a surprise more people are thinking about how they are protecting their families with life insurance,” explained Chris Pyne, Unum Group Benefits executive vice president. “For most people, the ability to earn an income throughout their life is the biggest asset they have.”
Forty eight percent of American households – nearly half – would risk financial disaster within three months of the death of a primary wage earner without adequate coverage. Though 22 percent of survey respondents said they had considered adding to their coverage as a result of the pandemic, certain demographics were more likely to do so than others.

Those most likely to have considered buying coverage for the first time or adding to what they had since the start of the pandemic include: Hispanic adults (38 percent), Generation Z adults (38 percent), Black adults (36 percent), households with children (34 percent), and Millennials (30 percent). When delving more deeply into this life insurance policy trend and asking respondents how much coverage they needed, 36 percent said they required either the equivalent to or double their annual income. Another 28 percent felt they would require three to four times their annual income.



The Roe Agency Announces Employee Benefits Partnership!



The Roe Agency at Allstate Announces Employee Benefits Partnership


[Naples Florida] – The Roe Agency, Allstate Agency, has announced an exclusive partnership with Florida based Employee Benefits Consulting Firm, J Donovan Financial.


Dan, Principal of The Roe Agency, recognizes that the typical group health insurance model, while it was stagnant before, now requires a fresh and innovative perspective to ensure sustainability. By the end of 2020, it is predicted that over 10 million Americans will have lost employer sponsored health coverage. Dan and his team are proud to offer their national client base access to strategic health care options that have been saving businesses money at a time when they need it most.


The Roe Agency chose J Donovan Financial for their industry leading technology and progressive approach to benefits. J Donovan Financial and it’s team has received numerous national accolades, including being featured as a Face of Change in the industry by BenefitsPro and named a 2020 Rising Star by Employee Benefits Adviser.


 “The pandemic has changed the way we think about many things. I never realized that we could change the way we think about group benefits until now. With so much unknown, saving dollars and providing enhanced benefits is a top priority for us. I’m excited to be able to offer this service to our clients,” says Dan.


To see if your business is a candidate for this group benefits strategy, please contact Dan at The Roe Agency.


Allstate Agency, The Roe Agency, has been protecting clients for over 17 years.


(239) 593-7333





Property insurance carriers seeking large rate hikes on Florida policyholders




(The Center Square) – A quadfecta of factors is merging into one bottom-line reality for Florida’s 6.2 million property insurance policyholders: significant rate hikes await when they next renew policies – if thinly capitalized carriers opt to renew them at all.

Tallahassee-based Capitol Preferred Insurance Co. (CPI) has filed a proposed 26.2 percent premium increase for its 84,000 customers, and its affiliate, Southern Fidelity Property & Casualty (SFPCI), has submitted a proposed 31.1 percent rate hike to the Florida Office of Insurance Regulation (OIR).

CPI and SFPCI join a growing list of insurers citing skyrocketing reinsurance costs, loss creep from 2017 and 2018 hurricanes, coastal flooding and excessive litigation in requesting across-the-board property insurance rate hikes.

State law requires insurers appear before OIR if they propose rate increases of more than 15 percent. Between 2013-19, only one did so.

Since December, however, at least eight insurers have requested rate hikes topping 15 percent, including Edison’s Insurance Co., nearly 22 percent; Velocity Risk, 28 percent; and National Specialty Insurance Co., 28 percent.

Numerous other carriers have filed for increases just under that 15 percent threshold. Security First, which initially sought a 17.5 percent increase, raised premiums 12.8 percent and didn’t renew 5,000 policies.

Universal Property and Casualty, the state’s largest carrier, has filed for a 12.4 percent increase; People’s Trust, 10.9 percent; AIG, 9.6 percent; Florida Family, 6.5 percent; and FedNat, 5.5 percent.

CPI writes business in South Carolina and Louisiana, in addition to Florida, and owns SFPCI, which has 113,000 policies across Florida, South Carolina, Louisiana and Mississippi.

CPI had 108,870 Florida policies as of May 3, according to OIR, making it one of the state’s top 10 homeowners insurance companies.

OIR approved CPI’s request in May to shed 23,800 policies it inherited from SFPCI in February 2019, leaving it with 84,000 Florida policies, “to protect the best interests of the public and policyholders.”

CPI initially proposed a 47 percent hike, amended it to 36.5 percent and then 26.2 percent after OIR issued a consent order in May allowing it to drop the 23,800 policies because without the cancellations the carrier “will continue to generate unsustainable losses.”

CPI reported net losses of $5.1 million in 2017, $17.8 million in 2018 and $25.7 million in 2019.

During a February OIR hearing, CPI/SFPCI President and CEO Jimmy Graganella said reinsurance costs and lawsuits are primary drivers in driving up rates, with loss creep and coastal flooding not related to hurricanes also contributing.

Florida’s insurance structure is based on reinsurance, essentially insurance for insurers, because many independents that emerged after major carriers abandoned the state after the 2004-05 hurricane seasons are thinly capitalized.

Many rely on private capital from hedge funds and other sources that are essentially gambling hurricanes won’t happen to incur mass losses.

After a decade without a landfall hurricane, 2017’s Hurricane Irma caused $17 billion in damage, and 2018’s Hurricane Michael as much as $12 billion, ending an era of “soft pricing.”

Because Florida allows claims to be filed three years after an event, reinsurers are hedging their bets by requesting carriers raise rates between 25 percent to 45 percent to account for loss creep from the 2017 and 2018 storms.

CPI also cited leaks and increasingly routine coastal flooding from rising sea levels as significant cost-drivers.

Graganella said although Florida lawmakers revised the state’s “assignment of benefits” (AOB) provision in 2019, excessive litigation continues to impose significant costs on insurers, with 36 percent of claims received by his companies the last year filed by attorneys on behalf of policyholders, up from 4 percent several years ago.