Life Insurance Rates Decline in 2009: Good for Consumers, Bad for Insurers

Posted in Life Insurance

March 18th, 2010

A recent press release from Conning Research &Consultingrevealed that life insurers saw a decline in life insurance premiums in 2009, something that would have been good for consumers, but was not so great for insurers.

In the press release, the research company proposed taking a look at the importance of long-term expense control to avoid missing out on future profits. However, for consumers, this maybe a good time to save on life insurance.

Profits on the Decline

The new Conning Research study, Life Insurance Expenses: Breaking Through the Edge of Efficiency, looked at the individual expenses of life insurance companies and analyzed how much factors like economies of scale and product mix influence a company’s efficiency. It also looked at the influence of management and how this plays a role.

The report looked at low-cost companies then reviewed their approach to expense management. It found that the companies that show the best profits are those that take a rigorous and consistent approach to expense analysis and control. This helps them ensure long-term profitability.

How This InformationCan Benefit You

As a consumer, it’s good to look at what life insurance companies are up to so that you can find ways to benefit in the process. While they work out thefactors they want to have affect life insurance costs, you can take advantage of their planning phase and find ways to save on life insurance.

Of course, the best way is to simply shop around for life insurance quotes until you find the company that offers the best coverage for the best price. But now is as good a time is any to jump in and find a reasonable quote before the companies get their plan together and begin increasing rates for 2010.