There’s been a lack of new life insurers entering the industry due to it being run by large incumbents, but those that are popping up are attempting to thrive in niche markets, according to a Life Annuity Specialist report. The article says only four life insurers launched last year - Employers Protective, Independent Life, Lumico Life Insurance Company of New York and Imperial Insurance.
A senior research analyst at S&P Global told Life Annuity Specialist that, “startup life insurance companies without an affiliation with an existing life insurance group or distribution partner haven’t had a lot of staying power.” For example, one of the insurers that started last year, Independent Life, is targeting the structured settlement market. Structured settlement broker, Mark Wahlstrom, said having an insurer that can write structured settlements qualifying for income tax-free treatment and for monies subject to taxation, non-qualified structures is “an important step forward for the industry...it is only a matter of time before other life insurers recognize this ‘niche market’ is potentially worth three to four times its current premium written and that we will see other major players enter with innovative products.”
