Jinnah: In response to higher interest rates, carriers are redesigning products that leverage this stronger investment performance to strike the optimal balance between competitiveness and profitability. We observe a continued surge in the introduction of indexed universal life products to the market to meet the consumer demand for tax-deferred growth opportunities. Term has also grown due to more competitive products, additional distribution partners, and underwriting improvements. Final expense and pre-need life insurance products remain a substantial portion of whole life sales, particularly among older Americans, and are expected to stay in high demand. Products offering living benefits, such as accelerated death benefit riders and combination life/long-term care (LTC) products, are gaining traction, and executive benefits, such as company-owned life insurance (COLI), bank-owned life insurance (BOLI), and insurance-company owned life insurance (iCOLI), retain their market appeal.¹

Tracy: Life insurance carriers continue to expand maximum face amounts on accelerated underwriting programs in response to better data and pressure from distributors and competitors. They are also seeking to increase automatic binding and jumbo limits in response to ongoing high inflation. Digital transformation remains a hot topic as carriers further enhance and streamline their accelerated and nonmedical underwriting programs to improve the customer and agent experience. Additionally, there is a growing interest in Health & Wellness initiatives, which have the potential to enhance persistency, boost customer engagement, and ultimately improve mortality outcomes. 

Jinnah: For over 140 years, Munich Re has been a trusted partner for carriers, offering expert consultation and risk sharing. We provide competitive pricing on a range of both traditional and innovative reinsurance solutions, supported by strong guarantees that reflect confidence in our solutions and pricing strategies. With over $1.4 trillion in life insurance in-force in the US, Munich Re Life US has the experience and proficiency to drive the market forward.²

Munich Re Life US also brings deep expertise in risk assessment and actuarial assumption setting. Our team of biometrics experts utilizes our extensive individual life reinsurance experience and proprietary data sources to provide carriers with insights into their own business and emerging trends. We have accumulated over 11 years of random holdout and post-issue audit monitoring data, covering over 33,000 lives across 30 accelerated underwriting programs. This ensures that carriers' programs benefit from the latest insights on emerging mortality trends in the US individual life accelerated underwriting market.³

Tracy: We collaborate closely with carriers to introduce new products to their policyholders, leveraging our deep product and underwriting expertise. In addition to traditional products like term and whole life, we have deep expertise in final expense, life/LTC combination products, and COLI/BOLI. Munich Re Life US also partners with carriers on their in-force blocks of business, whether it is part of their retention or recaptured due to actions by other reinsurers. Our appetite for risk and access to rich data allows us to offer competitive pricing and attractive rate guarantees.⁴ We also collaborate in M&A transactions with bidders who prefer not to take on mortality and morbidity risks, enabling our partners to deliver the most attractive offerings to carriers looking to offload blocks of business.

Tracy: Carriers need a reliable partner they can turn to first for guidance in today’s competitive marketplace. Munich Re has consistently demonstrated a client-first approach – even amid challenging reinsurance market conditions – by offering innovative solutions that address significant obstacles. Our creativity sets us apart. We develop solutions that are unprecedented in the industry, tailored specifically to each carrier's unique motivations, goals, and challenges.

Jinnah: Once a product is launched, we remain a committed partner, working closely to monitor and enhance the program regularly. This ensures that pricing remains accurate and that the data, product, and processes stay cutting-edge. Our ability to respond swiftly to monitoring results and adjust underwriting programs in real time allows carriers to address potential issues before actual mortality experience becomes evident. Munich Re provides carriers with a comprehensive view of market trends, helping them gain broader insights into their own business.

As the largest global reinsurer, Munich Re is supported by a robust balance sheet, extensive expertise, and the highest capacity in the reinsurance market. Unlike many other reinsurers that rely on retrocessionaire support, we operate without such dependencies, enabling us to help carriers engage in the industry’s largest face amount policies.

Jinnah: One of the most rewarding projects I’ve worked on began a few years ago when we partnered with a growing life insurance carrier looking to completely overhaul their outdated legacy systems and processes—including paper applications—and transition to modern platforms, programs, and products that could compete with the industry’s best.

In our initial meeting, we not only showcased our cross-functional capabilities but also assessed the client for the key qualities we value in a partner: namely, being humble, hungry, and smart! Just days after our pitch, we learned we had won the opportunity. From the outset, there was something special about the group of people who came together to make this project a reality.

On a personal note, during our first offsite meeting with the client, I accidentally left my cell phone in a cab in NYC. It felt like an early test of our relationship and teamwork, and it was incredible to see how seamlessly everyone collaborated to help retrieve my phone. That experience showed me we could tackle any challenge together, including the ambitious goal of launching a fully digital platform and product. I also learned that the chemistry, energy, and relationships within a team are just as crucial as the skills and expertise each member brings.

Despite many twists and turns along the way, including a global pandemic, we successfully launched the project on time. However, the most rewarding part is that it didn’t end there. Several years later, we still meet regularly to review program KPIs, monitor results against pricing expectations, adjust rules and guidelines as needed, and discuss ongoing program expansions. This has truly evolved into a lasting partnership, and I am incredibly proud to be a part of it!