American National Discontinues Term Life Sales

[Allen Trent]

One carrier executive told me this week they just had their largest claim ever at $100M and their excess claims during pandemic were $1.4B (billion) over & above normal claim amounts. Not a carrier selling in senior or final expense marketplace, so major mortality slippage being seen both from existing long term inforce but also from accelerated algorithms not delivering as promised in being equivalent to traditional UW (in terms of mortality)

 

[Life Hawk]

One carrier executive told me this week they just had their largest claim ever at $100M and their excess claims during pandemic were $1.4B (billion) over & above normal claim amounts. Not a carrier selling in senior or final expense marketplace, so major mortality slippage being seen both from existing long term inforce but also from accelerated algorithms not delivering as promised in being equivalent to traditional UW (in terms of mortality)

$100M... hmmm, wonder who decided that somehow made sense in a book of business.

 

[Allen Trent]

$100M... hmmm, wonder who decided that somehow made sense in a book of business.

I am sure it involved one or several reinsurers.

 

[Life Hawk]

I am sure it involved one or several reinsurers.

... probably went something like this, "Yes, let us 'reassure you', this makes a lot of sense."

Looked like a good idea on somebody's white board.

 

[Allen Trent]

... probably went something like this, "Yes, let us 'reassure you', this makes a lot of sense."

Looked like a good idea on somebody's white board.

Or this "100M is just like 1,000 policies for $100k. Same difference, but less underwriting cost & we get to tell our buddies at the club about it".........5 years later after all 10 people involved no longer work at companies. "Who in the hell authorized this? Looking back in the file, no one noticed he had 2 speeding tickets at age 16 & genital warts in college".

 

[somarco]

I am sure it involved one or several reinsurers.

One or more reinsurance treaty may have been cancelled. Lose your reinsurance someone has to pull the plug.

 

[helgaemines]

Maybe partnering with Bestow was not good for them.

Hello!

Really?

Does American National partner with Bestow??

 

[NewbieNewbie]

Hello!

Really?

Does American National partner with Bestow??

I don't believe so but they do similar uw using a life risk classifier to determine if an exam is necessary. Up to 1mm with no exam to age 50, 500k to age 60. I personally think they want to sell annuities in this interest rate environment.