HARTFORD, Conn., Sept. 17, 2018 /PRNewswire/ -- The recent very high rate of growth of the Affluent Market is a significant opportunity for life insurers, according to a new study by Conning.
"Affluent households—those with more than $100,000 income—grew by 30 percent between 2012 and 2016," said Mary Pat Campbell, a Vice President, Insurance Research at Conning. "While still the smallest income segment in number of households, the Affluent Market has significantly more financial resources than the Middle Market and is able to purchase a wide variety of financial products. However, financial services firms are very focused on the segment, and insurers face strong competition for Affluent Market share."
The Conning study, "2018 Life-Annuity Consumer Markets Annual" reviews the consumer markets for life insurers with focused analyses of demographic segments, generations, and income groupings. The study also includes Conning's estimates of the opportunities for insurers through an analysis of financial needs and resources for the U.S. consumer.
"While Emerging Affluent households—those with incomes of $100,000 to $199,999—have grown by 23 percent, the growth of the Mass Affluent market with $200,000 and more in income was a stunning 61 percent from 2012 through 2016," said Steve Webersen, Head of Insurance Research at Conning. "While the Affluent Market leads in life insurance ownership, our analysis shows that this market still has a large protection gap, signaling unmet need and insurer opportunity. Of course, Affluent Market retirement and protection needs are more complex, so insurers need a sophisticated range of products to compete successfully here."
"2018 Life-Annuity Consumer Markets Annual" is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading investment management firm with approximately $132 billion in global assets under management as of June 30, 2018.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of June 30, 2018, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities.