Latest news with #NAIC
Independent Singapore
13 hours ago
- Business
- Independent Singapore
Cracking the code: How the insurance industry can win over Gen Z
As Gen Z, those born between 1997 and 2012, enter maturity, it's restructuring industries worldwide. Branded for their tech eloquence, realistic financial behaviours, and social cognisance and responsiveness, this generation has become the most dominant consumer group. However, despite their expanding economic leverage, there is one industry that's struggling to connect with them—insurance. Many studies expose a conspicuous gap between Gen Z and those within the insurance industry. With Gen Z's acceptance rates and deep-seated cynicism, it's obvious that the conventional approach is not working. However, this challenge also presents a significant opportunity if the industry is prepared to adapt and evolve. A generation largely uninsured According to a 2024 study by the National Association of Insurance Commissioners (NAIC) featured in a recent article from Finance Yahoo, less than 21% of Gen Z adults have renters' insurance. The numbers decrease even further with other major products—only 5% have contents insurance, 24% have life insurance, and 30% have travel insurance. This gap is not merely because of indifference. Since Gen Z individuals are evolving in an environment fraught with economic uncertainties, grappling with rising housing costs, student loan debts, and a volatile job market, insurance becomes a distant concern, a luxury they're considering getting 'someday.' Trust gap and why traditional insurance falls flat Gen Z's unwillingness also came from a profound distrust of legacy financial organisations. Having matured during economic recessions and amid online half-truths, many view underwriters as multifaceted, profit-driven individuals who are difficult to deal with and even harder to trust. There is also a prevalent opinion that insurance is something you need later, once you have a loan, start a family, or develop health problems. Until then, it's easy to depend on the mentality of 'I'll deal with it if something happens.' As a consequence, many Gen Z-ers either postpone insurance decisions or completely disregard them. Bridging the gap with education and digital innovation Approximately two-thirds of Gen Z mention a lack of knowledge and understanding about getting insurance. Likewise, trust is a key barrier to buying one. Even more disturbing, 48.1% of them say that they never think about insurance at all or assume it's already covered in the apps and services they're using. See also Guide to Health Insurance Plans in Singapore (2023) To alter these scenarios, insurance providers must meet Gen Z where they are—online. Affiliating with content makers on platforms such as Instagram, TikTok, and YouTube could help clarify and interpret the fine print. Quick, relevant videos on topics such as how deductibles work or why renters' insurance is important can have a huge influence. Simplify, digitise, and humanise Gen Zers are not anti-insurance—they merely can't see themselves in the way it's presently promoted or designed. With low homeownership rates, economic setbacks, and a preference for speedy, user-friendly digital solutions, they need insurance that feels relevant, accessible, manageable, and reliable. The industry has a fundamental choice to make—continue with 'business as usual,' or advance and transform into a space that speaks directly to this generation. This is not just about transforming a brand; it's a call for an in-depth modification, one that streamlines, digitises, and, most significantly, personalises how insurance is made available.
Yahoo
3 days ago
- Business
- Yahoo
House passes bill to eliminate investment cap requested by FM
The Rhode Island House voted 71-0 Tuesday, May 27, 2025, to approve a bill repealing caps on alternative investments for local insurance companies. (Screenshot/Capitol TV) A state policy change aimed at helping Johnston insurance company FM expand its investments, and potentially, its employment in Rhode Island, sailed through the Rhode Island House of Representatives Tuesday. The 71-0 vote came without discussion, following a strong backing by Rep. Joseph Solomon, chairman of the House Committee on Commerce, which held a May 15 hearing on the bill. 'It's a great bill,' said Solomon, a Warwick Democrat, noting that no written or verbal opposition on the proposal emerged during the hearing before the House panel. The bill sponsored by Rep. Alex Finkelman, a Jamestown Democrat, was introduced on May 8 after FM executives met with House Speaker K. Joseph Shekarchi. The Fortune 500 company was formerly known as FM Global, but rebranded in July 2024. The proposed policy change seeks to let insurance companies invest as much as they want in nontraditional or alternative assets — referred to under federal reporting requirements as Schedule BA assets — like hedge funds, private equity funds and real estate holdings. It effectively reverses the 1984 law on the books, which limited investments on long-term assets outside of traditional stocks and bonds to no more than 10% of a company's total assets. Eleventh hour insurance bill could help top employer FM expand in R.I. The origins of the 1984 law remain somewhat hazy, but proponents for its repeal insist the rule no longer makes sense, with alternative investments like hedge funds now widely used and commonly accepted. 'When this law was enacted in 1984, the limitation was practical, as regulatory techniques for overseeing insurance investments were more limited at that time,' Solomon said Tuesday. 'The law is now outdated.' Since 2010, insurance companies have been steadily increasing investments in alternative assets, searching for higher returns in a low-interest rate environment. The appeal of alternate asset classes increased further after 2017 regulatory changes adopted by the National Association of Insurance Commissioners (NAIC), which reformed how companies could record exchange-traded funds on their balance sheets. Certain bonds are also now considered Schedule BA assets under a new NAIC effective Jan. 1. Removing the state's limit on BA investments now is particularly timely,' Jonathan Schreiber, associate vice president of state government relations for the American Property Casualty Insurance Association, wrote in a May 15 letter to lawmakers. The change would also put Rhode Island in line with neighboring Massachusetts and Connecticut — a key selling point for Gov. Dan McKee, who has already signaled support for the policy change. Especially as the state wrestles with how to retain major employers like Hasbro, Inc., which previously indicated it was looking to abandon its Pawtucket headquarters in favor of a new location in Boston. The potential relocation was put on hold after Trump tariffs roiled markets and put company profits at risk; an update is now expected sometime this summer. FM executives made it clear they have no intention of picking up and moving from their 8-acre Johnston headquarters, which houses the bulk of the property insurer's 1,500-person local workforce. Instead, the company is contemplating more hiring as it looks to expand its offerings of research, development and industrial and commercial insurance products for renewable energy, Finkelman said previously. FM did not offer specifics on expansion plans when asked by Rhode Island Current. Lifting the investment cap could also benefit the other 29 local insurance companies that operate in Rhode Island, according to Elizabeth Dwyer, director for the Department of Business Regulation. Dwyer wrote a letter supporting the policy change, noting that state business regulators will continue to carefully monitor companies. 'This vigilance gives me confidence that a blunt tool for investments is no longer necessary,' Dwyer wrote in the May 14 letter to lawmakers. Lincoln-based Amica Mutual Insurance Co. and Providence's Delta Dental of Rhode Island also submitted written support for the policy change, along with the Rhode Island Business Coalition and the National Association of Mutual Insurance Companies. A companion bill in the Senate, sponsored by Johnston Democrat Andrew Dimitri, remains under review by the Senate Committee on Finance following an initial May 20 hearing. A committee vote has not been scheduled as of Tuesday, according to Greg Pare, a Senate spokesperson. If passed by both chambers and signed into law by McKee, the investment cap would be repealed immediately. Reps. Arthur Handy, Brian Kennedy, Earl Read III and Brandon Voas were not present for the House vote Tuesday. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
3 days ago
- Business
- Yahoo
Mark Farrah Associates Analyzed the 2024 Medicare Supplement Market
CANONSBURG, Pa., May 28, 2025--(BUSINESS WIRE)--In the latest Healthcare Business Strategy report, Mark Farrah Associates (MFA), provided an overview of the 2024 Medicare Supplement market with insights about competitive positioning and standardized plan type preferences. Medicare Supplement plans, also known as Medigap or Med Supp plans, covered over 13.54 million seniors as of December 31, 2024, representing a year-over-year enrollment decline of 0.3%. Many leading managed care organizations, Blues plans, regional plans, and multiline carriers compete in the Medicare Supplement space. Highlights Include: MFA's assessment of standardized plan type preferences for 2024 found Plan G remained the most popular plan type, enrolling approximately 5.7 million members. Approximately 4.5 million Med Supp members were enrolled in Plan F and accounted for 30% of the market in 2024. Medicare Supplement plans collectively earned approximately $37 billion in premiums and paid out $31.3 billion in claims during 2024. The aggregate loss ratio (incurred claims as a percentage of earned premiums) was 84.4% as of December 2024. UnitedHealth continued to lead in this segment with 4.3 million members and covered 32% of the market as of December 31, 2024. To read the FREE full text of "Medicare Supplement Enrollment Down Slightly in 2024", visit the MFA Briefs on Mark Farrah Associates' website. You can also follow us on LinkedIn. About Med Supp Market Data Med Supp Market Data, a Health Coverage Portal option offered by Mark Farrah Associates, presents the latest market share and financial performance data for Medicare Supplement plans. The product includes state-by-state membership, premiums, claims and loss ratios for plans nationwide. Online tables also include claims contacts as reported in the financial statements as filed with the National Association of Insurance Commissioners (NAIC). California managed care plans do not file financial statements with the NAIC and are not included in this analysis. For more information about Med Supp Market Data, please visit our website ( or call 724.338.4100. About Mark Farrah Associates (MFA) MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include: Health Coverage Portal™, Medicare Business Online™, Medicare Benefits Analyzer™, County Health Coverage™, Health Plans USA™ and 5500 Employer Health Plus. View source version on Contacts Mark Farrah AssociatesAnn Marie Wolfe, amwolfe@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
Mark Farrah Associates Analyzed the 2024 Medicare Supplement Market
CANONSBURG, Pa.--(BUSINESS WIRE)--In the latest Healthcare Business Strategy report, Mark Farrah Associates (MFA), provided an overview of the 2024 Medicare Supplement market with insights about competitive positioning and standardized plan type preferences. Medicare Supplement plans, also known as Medigap or Med Supp plans, covered over 13.54 million seniors as of December 31, 2024, representing a year-over-year enrollment decline of 0.3%. Many leading managed care organizations, Blues plans, regional plans, and multiline carriers compete in the Medicare Supplement space. Highlights Include: MFA's assessment of standardized plan type preferences for 2024 found Plan G remained the most popular plan type, enrolling approximately 5.7 million members. Approximately 4.5 million Med Supp members were enrolled in Plan F and accounted for 30% of the market in 2024. Medicare Supplement plans collectively earned approximately $37 billion in premiums and paid out $31.3 billion in claims during 2024. The aggregate loss ratio (incurred claims as a percentage of earned premiums) was 84.4% as of December 2024. UnitedHealth continued to lead in this segment with 4.3 million members and covered 32% of the market as of December 31, 2024. To read the FREE full text of " Medicare Supplement Enrollment Down Slightly in 2024", visit the MFA Briefs on Mark Farrah Associates' website. You can also follow us on LinkedIn. About Med Supp Market Data Med Supp Market Data, a Health Coverage Portal option offered by Mark Farrah Associates, presents the latest market share and financial performance data for Medicare Supplement plans. The product includes state-by-state membership, premiums, claims and loss ratios for plans nationwide. Online tables also include claims contacts as reported in the financial statements as filed with the National Association of Insurance Commissioners (NAIC). California managed care plans do not file financial statements with the NAIC and are not included in this analysis. For more information about Med Supp Market Data, please visit our website ( or call 724.338.4100. MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include: Health Coverage Portal™, Medicare Business Online™, Medicare Benefits Analyzer™, County Health Coverage™, Health Plans USA™ and 5500 Employer Health Plus.
Yahoo
3 days ago
- Business
- Yahoo
Why isn't Gen Z buying insurance?
As Gen Z comes of age, it is quickly becoming one of the most influential consumer groups in the global economy. Born between 1997 and 2012, this digital-native generation is known for its tech savviness, pragmatic approach to money, and social consciousness. But one sector that is still struggling to capture its attention is insurance. A 2024 study by the National Association of Insurance Commissioners (NAIC) found that fewer than 21% of Gen Z adults carry renters insurance. Life insurance rates are even lower. A study conducted by Smart Money People in March 2024 revealed that Gen Z falls behind other generations when it comes to key insurance products. Only 5% have contents insurance, 24% have life insurance, and 30% have travel insurance. This disengagement stems from more than just apathy. Gen Z is navigating an unstable job market and a challenging economic reality, from rising housing costs to student debt. In this environment, insurance can seem like a luxury or merely something to think about later. Gen Z-ers are sceptical of traditional financial institutions. They are digital natives who have grown up amid economic instability and online misinformation. Many see insurance companies as opaque, profit-driven entities that make it hard to understand coverage and even harder to file a claim. There is also a common belief among young people that insurance is only necessary when you are older or have a family. The mindsets of 'I am healthy and don't need life insurance' or 'I'll worry about contents insurance if something happens' help contribute to underinsurance. Many Gen Z individuals do not fully understand the value of insurance or trust insurance providers. A poll indicated that two-thirds of respondents from this age group believe that a lack of understanding or trust is a significant barrier to purchasing insurance. More worryingly, a considerable portion of Gen Z (48.1%) reported not thinking about insurance at all or assuming it was covered by other platforms they use. The current disconnect represents a unique opportunity for the insurance industry to reinvent itself and meet Gen Z's needs. Insurers can start by teaming up with content creators on TikTok, Instagram, and YouTube to break down insurance myths in relatable ways. Bite-sized videos explaining renters' insurance or how deductibles work would make a big impact. Gen Z has grown up in a digital environment where easy payments and streamlined processes are expected. They demand simple payment options such as mobile-first channels and digital wallets when considering any insurance purchases. Insurers should create flexible insurance products in the form of micro-policies, such as insuring a phone for a week, bundling lifestyle-specific coverage, or covering gig income for a month. Subscription-style pricing and the ability to turn coverage on and off digitally will appeal to Gen Z's needs and flexibility. The combination of low homeownership rates, financial constraints, a lack of understanding about insurance, a demand for digital solutions, and a perception that insurance is a low priority contributes to Gen Z's hesitance to purchase. Insurance providers must adapt to these dynamics to effectively engage this new generation. Gen Z is not anti-insurance, they just do not see themselves reflected in how it is traditionally sold. To earn their trust and loyalty, the industry needs to simplify, digitize, and humanise its offerings. This should be more than a marketing shift but a total transformation of its business mindset. "Why isn't Gen Z buying insurance?" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
