I've worked for a life insurance company who priced their life insurance in a way where they lost money. Phoenix life insurance. Their universal life insurance lost money and created arbitrage if the policy was minimally funded. A few banks found that out and bought policies on all their consumers and almost bankrupted the company. This made Phoenix almost go under. Luckily they diversified and their annuities department covered the loss of their life insurance department (just barely). So the point is they diversity and don't always go under.
The article says the costs will be pssed on via premium increases
“For OneAmerica, we expect the costs of this are going to be well over $100 million, and this is our smallest business. So it’s having a huge impact on that,” he said.
He said the costs will be passed on to employers purchasing group life insurance policies, who will have to pay higher premiums.
Lol i was literally just trying to post this. Kuddos
Lets just keep posting the info - we need to share
Reinsurance
Eventually. It’s like a slow motion freight train headed towards a giant stack of dominoes
I've worked for a life insurance company who priced their life insurance in a way where they lost money. Phoenix life insurance. Their universal life insurance lost money and created arbitrage if the policy was minimally funded. A few banks found that out and bought policies on all their consumers and almost bankrupted the company. This made Phoenix almost go under. Luckily they diversified and their annuities department covered the loss of their life insurance department (just barely). So the point is they diversity and don't always go under.
The article says the costs will be pssed on via premium increases
“For OneAmerica, we expect the costs of this are going to be well over $100 million, and this is our smallest business. So it’s having a huge impact on that,” he said.
He said the costs will be passed on to employers purchasing group life insurance policies, who will have to pay higher premiums.