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Every life insurance agent has experienced this. The meeting starts strong. The need is clear. The person across the table understands the importance of protecting their family. Then the premium comes up, and the energy shifts.

Hesitation is often labeled a price objection. In my experience, price usually isn’t the real issue. Understanding is.

Why do people believe life insurance is expensive? Research shows most Americans dramatically overestimate the cost of coverage. Young adults, for example, tend to overestimate the price of life insurance by 10 to 12 times the actual cost.

When someone believes coverage costs are 10 times higher than they actually are, resistance isn’t surprising. It’s inevitable.

Over the years, I’ve watched thousands of life insurance discussions unfold across the industry. The premium rarely stops the decision. Misunderstanding behind the premium does. Agents who recognize this difference learn to guide people toward value rather than to defend price.

Once the focus shifts, everything changes.

The opportunity in front of the life insurance industry

Despite decades of awareness campaigns, the protection gap in the U.S. remains enormous.

Roughly 100 million Americans say they need life insurance or need more coverage than they currently have. Ownership levels tell a similar story. Only 51% of adults report having life insurance coverage today.

At the same time, demand for protection continues to grow. New individual life insurance premiums reached $17.5 billion in 2025, marking one of the strongest years on record.

These numbers highlight an important insight into this profession. The life insurance market doesn’t face a demand problem. It faces an understanding problem.

Conversations with agents across the country reveal a recurring theme. The biggest barrier isn’t the product. Perception of cost gets in the way. When people understand the role protection plays in their financial lives, the opportunity to serve them becomes obvious.

Shift life insurance discussions from cost to value

Too many life insurance discussions begin with product structure: Coverage amounts, policy types, riders and premium breakdowns.

Those details play an important role in the end, but they rarely drive the initial decision. People respond to outcomes.

A stronger approach begins with responsibility.

Income supports nearly every aspect of a household’s financial life. Mortgage payments, education planning, daily living expenses and long-term goals all rely on income. Remove that income, and the entire financial structure changes overnight.

Life insurance protects that structure. Guiding people toward this reality helps them connect the premium to the role coverage plays in protecting everything they’re working toward.

Ask questions that create clarity

Price objections often surface when the discussion stays focused on cost. Clarity improves quickly when attention shifts to responsibility.

Simple questions often open the door:

• What financial obligations would continue if your income stopped tomorrow?
• Who would cover the mortgage, education expenses, or daily living costs?
• How long would savings realistically support your household?
• What financial stability would you want your family to maintain, no matter what happens?

These discussions move attention away from the premium and toward the purpose of protection. As people begin thinking about outcomes, the decision framework changes.

The cost people rarely calculate

Most households calculate the monthly premium. Very few calculate the financial consequences of having no protection at all.

Income loss affects far more than just the next few months. It reshapes every long-term goal connected to that income stream. Education plans stall. Retirement timelines shift. Debt obligations fall on surviving family members.

Research shows that 1 in 4 American households would feel the financial impact of losing the primary wage earner within a single month.

I’ve seen this reality drive some of the most meaningful moments in this profession. After people understand the financial ripple effect of income loss, the focus moves away from price. Protection becomes the priority.

Position life insurance as a strategic decision

Life insurance often gets framed as another monthly expense. Framing it this way limits how people think about its role.

Coverage provides immediate capital when it’s needed most. Permanent policies may also build cash value that policyholders can access during their lifetime.

Together, these features expand the role life insurance can play in long-term financial planning.

Clear explanations help people see coverage as a strategic financial decision rather than a simple cost. That perspective builds stronger understanding and stronger relationships over time.

5 practical ways to reframe price objections

Price concerns will always appear in meaningful financial decisions. The professionals who move past these objections most consistently tend to guide people in several ways:

1. Translate premiums into protected income instead of monthly cost.
2. Compare the financial impact of protection versus going without coverage.
3. Connect coverage decisions directly to family responsibilities.
4. Use real scenarios to illustrate the financial gap income loss creates.
5. Position life insurance within a broader long-term planning discussion.

These approaches reshape how people evaluate the decision. Clarity replaces hesitation. Confidence follows.

Leading better life insurance conversations

Price objections will always be part of the life insurance business. Outcomes change based on how agents respond.

The best professionals slow the discussion down. They ask thoughtful questions. They focus on responsibility, stability and the future that people want to protect.

Here’s the key takeaway for agents: The most effective life insurance discussions focus on long-term security and responsibility instead of the immediate premium. Once someone understands what protection truly provides, the decision shifts naturally.

The premium becomes part of a much wider range of choices. A choice about protecting the future that people are working hard to build. And that’s a conversation worth leading.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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One of the nation’s biggest health and life insurance firms has been overcharging Virginians for its accident, dread disease and other supplemental health policies, a State Corporation Commission Bureau of Insurance review found.

As a result, Aflac — also known as American Family Life Assurance Co. — is cutting premium rates on 16 different policies by as much as 35%, its filings with the bureau show.

The cuts will save more than 120,000 Virginia policyholders some $12.6 million a year, the filings show.

In addition, Aflac agreed to pay a $64,000 fine to settle the matter.

“This represents exactly the type of oversight work the Bureau of Insurance does every day to protect Virginia consumers,” said Scott White, commissioner of the bureau.

“When we discovered these supplemental health products weren’t delivering the value policyholders were paying for, we acted to secure premium rate reductions that resulted in real savings to them,” he said.

It started with one of the regular market analysis reviews that the bureau staff conducts to see how insurers do business.

In the review, bureau staff checked six specific Aflac policies that offered supplement coverage when policyholders suffer injuries from accidents, need cardiac care or need to pay a hospital bill.

They found four of the six policies they reviewed weren’t meeting a basic test of fair pricing.

The percentage of premium income Aflac was paying out in claims was low.

That percentage, claims divided by premiums, is called the loss ratio. When it is too low, regulators say it means premiums are too high.

As they asked Aflac about this, bureau staff found a total of 16 supplemental policies had loss ratios well below the minimum required. In addition to the four policies, there were other policies offering similar coverage, as well as policies offering dental, vision and short-term disability benefits. When policies pay less than a minimum loss ratio, it means premiums are too high.

In Virginia, these sorts of policies are supposed to have loss ratios of at least 50%. Less than half of the money Aflac collected from policyholders was used to pay claims.

Most had been running loss ratios averaging between 30% and 35% since 2019, a Richmond Times-Dispatch review of Aflac rate filings found.

In one year, the loss ratio on one so-called dread disease policy, covering organ transplants, heart attacks, strokes and coma, was as low as 14% and averaged 23% from 2019 through 2024. A vision policy’s loss ratio was just 18% one year, and a dental policy that more than 3,300 Virginians bought, it ranged from 23% to 24% for three years.

Aflac cut the dread disease premiums by 35%, bringing them down to an average of $159 a year. It cut the dental and vision policies’ rates by 20%.

Loss ratios on such supplemental health policies are the lowest set in state law or regulation. Affordable Care Act policies must be priced to produce at least an 80% loss ratio, as is the case for long-term care insurance. Medicare supplement coverage has to have at least a 65% loss ratio.

Aflac Senior Vice President Thomas McDaniel said the company is cutting premium rates and paying the fine “solely for the purpose of a settlement and does not constitute, nor should it be construed as, an admission of any violation of law.”

In a statement, the company added: “As a leading supplemental insurer in the United States, we are committed to ensuring that our policyholders receive the benefits for which they are entitled. We continue to work with state regulators to ensure all standards are met.”

Dave Ress (804) 649-6948 dress@timesdispatch.com

“When we discovered these supplemental health products weren’t delivering the value policyholders were paying for, we acted to secure premium rate reductions that resulted in real savings to them.”

Scott White, commissioner of the bureau

The post Virginia insurance regulators order rate cuts for several Aflac policies appeared first on Insurance News | InsuranceNewsNet.

OLDWICK, N.J.–(BUSINESS WIRE)–
AM Best has maintained the under review with positive implications status for the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of the operating subsidiaries of The Fortegra Group, Inc. (Fortegra) (headquartered in Jacksonville, FL). Fortegra is a wholly owned subsidiary of its publicly traded parent company, Tiptree Inc. [NASDAQ: TIPT]. The property/casualty operating subsidiaries of Fortegra include Lyndon Southern Insurance Company (Wilmington, DE); Insurance Company of the South (Athens, GA); Response Indemnity Company of California (Redondo Beach, CA); Blue Ridge Indemnity Company (Wilmington, DE); Fortegra Specialty Insurance Company (Scottsdale, AZ); and Fortegra Europe Insurance Company SE (Malta). These companies are collectively referred to as Fortegra P&C Group.

Furthermore, AM Best has maintained the under review with positive implications status for the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Fortegra Belgium Insurance Company NV (Belgium), Fortegra Insurance UK Ltd. (United Kingdom), and Fortegra Indemnity Insurance Company, LTD. (Turks and Caicos), respectively.

Lastly, AM Best has maintained the under review with positive implications status for the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Fortegra’s life/health operating subsidiaries, which include Life of the South Insurance Company (Athens, GA); Bankers Life Insurance Company of Louisiana (Marksville, LA); and Southern Financial Life Insurance Company (Scottsville, KY). These companies are collectively referred to as Life of the South Group.

The ratings have been placed under review since October 2025 with positive implications, reflecting AM Best’s view that the announced acquisition of Fortegra by DB Insurance Co., Ltd., if completed as contemplated, could enhance Fortegra’s financial flexibility, operating scale and execution capabilities. The action also considers Fortegra’s strategic importance to the prospective parent as a platform for international growth and expansion. The ratings will remain under review with positive implications pending the close of the transaction and AM Best’s evaluation of parental support, integration plans, and the expected impact on the organization’s balance sheet strength, operating performance, business profile and enterprise risk management. As of April 2026, the transaction is ongoing and is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions. AM Best will continue discussions with management throughout this period.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260409267784/en/

Yizhou Hong

Senior Financial Analyst

+1 908 882 1692

yizhou.hong@ambest.com

Edin Imsirovic

Director

+1 908 882 1903

edin.imsirovic@ambest.com

Valentine Gu, AAG

Associate Financial Analyst

+31 20 308 5421

valentine.gu@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

The post AM Best Maintains Under Review With Positive Implications Status for The Fortegra Group, Inc.’s Insurance Subsidiaries appeared first on Insurance News | InsuranceNewsNet.

U.S. life insurance application activity showed double-digit growth of +14.3% year-to-date in Q1-2026, representing the highest Q1 growth on record and achieving the highest total volume for any quarter on record, according to the MIB Life Index. March also saw double-digit year-over-year growth, with activity up +17.7%. When comparing activity through Q1-2026 YTD to prior years, activity was up at +15.5% compared to both 2024 and 2023. Additionally, activity for Q1-2026 was up +10.2% compared to the previous quarter (Q4-2025).

⁠March 2026 saw YOY growth for all age bands, in the double digits for ages 40+. When comparing Q1-2026 to Q1-2025, activity was at growth for ages 30+, in the double digits for age 40+ and flat for ages 0-29. Activity in Q1-2026 for ages 0-29 was flat at -0.5%, ages 30-39 up +5.2%, ages 40-49 up +13.9%, ages 50-59 up +21.6%, ages 60-69 up +29.9%, and ages 70+ up +46.3%. When comparing Q1-2026 to the previous quarter (Q4-2025), all age bands saws growth, in the double digits for ages 0-29 and 60+.

Based on data reported to MIB by our members, March 2026 saw YOY growth for all face amounts, in the double digits for face amount from $1 up to but not including $2.5M, and in the triple digits for amounts from $2.5M up to but not including $5M. When comparing Q1-2026 to Q1-2025, we also saw YOY growth for all face amounts, in the double digits for face amount from $100K up to but not including $2.5M, and in the triple digits for amounts from $2.5M up to but not including $5M.

When including age bands comparing Q1-2026 to Q1-2025, ages 0-29 saw declines for amounts from $1 up to but not including $100K, flat activity for amounts from $100K up to but not including $250K, and growth for amounts $250K and over, in the double digits for amounts from $1M up to but not including $2.5M, and in the triple digits for amounts from $2.5M up to but not including $5M.

Ages 30-39 saw declines for amounts from $1 up to but not including $100K, flat activity for amounts from $100K up to but not including $1M, and growth for amounts $1M and over, in the double digits for amounts from $1M up to but not including $2.5M, and in the triple digits for amounts from $2.5M up to but not including $5M.

Ages 40-49 saw flat activity for amounts from $1 up to but not including $100K and growth for amounts $100K and over, in the double digits for amounts from $500K up to but not including $2.5M, and in the triple digits for amounts from $2.5M up to but not including $5M.

Ages 50-59 saw growth for amounts from $1 up to but not including $5M, in the double digits for amounts from $100K up to but not including $2.5M, and in the triple digits for amounts from $2.5M up to but not including $5M, and flat activity for amount $5M and over.

Ages 60-69 saw growth for amounts from $1 up to but not including $5M, in the double digits for amounts from $1 up to but not including $250K and for amounts from $500K up to but not including $5M, and in the triple digits for amounts from $250K up to but not including $500K, and declines for amount $5M and over.

Ages 70+ saw growth for amounts from $1 up to but not including $5M, in the double digits for amounts from $1 up to but not including $100K and for amounts from $250K up to but not including $5M, and in the triple digits for amounts from $100K up to but not including $250K, and declines for amount $5M and over.

When examining product types as reported to MIB by its members, all product types saw double-digit YOY growth in March. Term Life was up +29.7%, Whole Life up +29.6% and Universal life up +19.6%. Additionally, when comparing Q1-2026 to Q1-2025, all three product types showed double-digit growth. Term Life was up +27.0%, Whole Life up +24.3%, and Universal Life up +28.5%. When including age bands and comparing Q1-2026 to Q1-2025, Term Life and Universal Life saw growth for all age bands, in the double digits for ages 30-69 and in the triple digits for ages 70+. Whole Life saw growth for ages 30+, in the double digits for ages 40+, and flat activity for ages 0-29.

Methodology Change for 2026:

MIB has revised methodology to fine tune age and face amount bands to better meet industry needs, while also incorporating more precise filtering to isolate new business application activity and define applicant country. Please see the main MIB Life Index page on our website for details on our methodology change. All historical data in this report has been restated based on our new methodology, however, historical reports archived on our website reflect the methodology in place at the time of publication.

The post Life insurance application activity sees record-breaking Q1 appeared first on Insurance News | InsuranceNewsNet.

SCC

RICHMOND — One of the nation’s biggest health and life insurance firms has been overcharging Virginians for its accident, dread disease and other supplemental health policies, a State Corporation Commission Bureau of Insurance review found.

As a result, Aflac — American Family Life Assurance Co. — is cutting premium rates on 16 different policies by as much as 35%, its filings with the bureau show.

The cuts will save more than 120,000 Virginia policyholders some $12.6 million a year, the filings show.

In addition, Aflac agreed to pay a $64,000 fine to settle the matter.

“This represents exactly the type of oversight work the Bureau of Insurance does every day to protect Virginia consumers,” said Scott White, commissioner of the bureau.

“When we discovered these supplemental health products weren’t delivering the value policyholders were paying for, we acted to secure premium rate reductions that resulted in real savings to them,” he said.

It started with one of the regular market analysis reviews that the bureau staff conducts to see how insurers do business.

In the review, bureau staff checked six specific Aflac policies that offered supplement coverage when policyholders suffer injuries from accidents, need cardiac care or need to pay a hospital bill.

They found four of the six policies they reviewed weren’t meeting a basic test of fair pricing.

The percentage of premium income Aflac was paying out in claims was low.

That percentage, claims divided by premiums, is called the loss ratio. When it is too low, regulators say it means premiums are too high.

As they asked Aflac about this, bureau staff found a total of 16 supplemental policies had loss ratios well below the minimum required. In addition to the four policies, there were other policies offering similar coverage, as well as policies offering dental, vision and short-term disability benefits.

In Virginia, these sorts of policies are supposed to have loss ratios of at least 50%. Less than half of the money Aflac collected from policyholders was used to pay claims. Most had been running loss ratios averaging between 30% and 35% since 2019, a Richmond Times-Dispatch review of Aflac rate filings found.

In one year, the loss ratio on one so-called “dread disease” policy — covering organ transplants, heart attacks, strokes and coma — was as low as 14% and averaged 23% from 2019 through 2024. A vision policy’s loss ratio was just 18% one year, and a dental policy that more than 3,300 Virginians bought ranged from 23% to 24% for three years.

Aflac cut the dread disease premiums by 35%, bringing them down to an average of $159 a year. It cut the dental and vision policies’ rates by 20%.

Loss ratios on such supplemental health policies are the lowest set in state law or regulation. Affordable Care Act policies must be priced to produce at least an 80% loss ratio, as is the case for long-term care insurance. Medicare Supplement coverage has to have at least a 65% loss ratio.

Aflac senior vice president Thomas McDaniel said the company is cutting premium rates and paying the fine “solely for the purpose of a settlement and does not constitute, nor should it be construed as, an admission of any violation of law.”

In a statement, the company added: “As a leading supplemental insurer in the United States, we are committed to ensuring that our policyholders receive the benefits for which they are entitled. We continue to work with state regulators to ensure all standards are met.”

Dave Ress, (804) 649-6948 dress@timesdispatch.com

The post Virginia insurance regulators order Aflac rate cuts appeared first on Insurance News | InsuranceNewsNet.

The following information was released by the office of the Arizona Attorney General:

Attorney General Mayes announced today that two defendants have been sentenced to prison by the Maricopa County Superior Court for their roles in a fraud scheme that preyed on vulnerable Arizonans. On April 2, 2026, Shannon Ariel Lovell was sentenced to 3.5 years in the Arizona Department of Corrections, to be followed by supervised probation for 3 years. On March 12, 2026, Ryan Patrick Michell was sentenced to 5.5 years in the Arizona Department of Corrections, also to be followed by supervised probation for 4 years.

From July 1, 2017 through approximately July 8, 2019, in Maricopa County, Ryan Michell and Shannon Lovell operated a scheme designed to fraudulently collect life insurance proceeds at the expense of vulnerable victims.

“These defendants built a predatory scheme from the ground up creating a fake insurance company, targeting people facing addiction and homelessness, and then positioning themselves to profit from those victims’ deaths,” said Attorney General Mayes. “My office remains committed to protecting vulnerable Arizonans from exploitation and abuse.”

Michell created a fictitious company called “Patriot Life Insurance Company,” which was advertised as selling legitimate term life insurance. Together, Michell and Lovell deliberately targeted vulnerable populations, including those dealing with substance abuse as well as homeless individuals, they also made contact with potential victims by approaching them at methadone clinics.

Lovell served as the primary recruiter, convincing victims to sign up for what was described as a free life insurance policy subsidized by a nonprofit organization to help people who could not afford coverage. Once victims completed enrollment forms with their personal information, Michell used that information to take out real policies with actual insurance companies but altered the documents to substitute himself and Lovell as beneficiaries and replaced victims’ contact information with fictitious email addresses and their own home addresses. Michell and Lovell agreed to split the proceeds 50-50.

Michell pleaded guilty to Participating in a Criminal Syndicate, a Class 2 Felony, with one prior felony conviction, and Fraudulent Schemes and Artifices, a Class 2 Felony. Co-Defendant Shannon Lovell pleaded guilty to Participating in a Criminal Syndicate, a Class 2 Felony, and Fraudulent Schemes and Artifices, a Class 2 Felony.

The post ATTORNEY GENERAL MAYES ANNOUNCES PRISON SENTENCES IN FRAUDULENT LIFE INSURANCE SCHEME TARGETING VULNERABLE ARIZONANS appeared first on Insurance News | InsuranceNewsNet.

One of the nation’s biggest health and life insurance firms has been overcharging Virginians for its accident, dread disease and other supplemental health policies, a State Corporation Commission Bureau of Insurance review found.

As a result, Aflac — American Family Life Assurance Co. — is cutting premium rates on 16 different policies by as much as 35%, its filings with the bureau show.

The cuts will save more than 120,000 Virginia policyholders some $12.6 million a year, the filings show.

Anthem again pays restitution and fine over claims delays

In addition, Aflac agreed to pay a $64,000 fine to settle the matter.

“This represents exactly the type of oversight work the Bureau of Insurance does every day to protect Virginia consumers,” said Scott White, commissioner of the bureau.

“When we discovered these supplemental health products weren’t delivering the value policyholders were paying for, we acted to secure premium rate reductions that resulted in real savings to them,” he said.

It started with one of the regular market analysis reviews that the bureau staff conducts to see how insurers do business.

In the review, bureau staff checked six specific Aflac policies that offered supplement coverage when policyholders suffer injuries from accidents, need cardiac care or need to pay a hospital bill.

They found four of the six policies they reviewed weren’t meeting a basic test of fair pricing.

The percentage of premium income Aflac was paying out in claims was low.

That percentage, claims divided by premiums, is called the loss ratio. When it is too low, regulators say it means premiums are too high.

As they asked Aflac about this, bureau staff found a total of 16 supplemental policies had loss ratios well below the minimum required. In addition to the four policies, there were other policies offering similar coverage, as well as policies offering dental, vision and short-term disability benefits.

In Virginia, these sorts of policies are supposed to have loss ratios of at least 50%. Less than half of the money Aflac collected from policyholders was used to pay claims.

Most had been running loss ratios averaging between 30% and 35% since 2019, a Richmond Times-Dispatch review of Aflac rate filings found.

In one year, the loss ratio on one so-called “dread disease” policy — covering organ transplants, heart attacks, strokes and coma — was as low as 14% and averaged 23% from 2019 through 2024. A vision policy’s loss ratio was just 18% one year, and a dental policy that more than 3,300 Virginians bought ranged from 23% to 24% for three years.

Aflac cut the dread disease premiums by 35%, bringing them down to an average of $159 a year. It cut the dental and vision policies’ rates by 20%.

Loss ratios on such supplemental health policies are the lowest set in state law or regulation. Affordable Care Act policies must be priced to produce at least an 80% loss ratio, as is the case for long-term care insurance. Medicare Supplement coverage has to have at least a 65% loss ratio.

Aflac senior vice president Thomas McDaniel said the company is cutting premium rates and paying the fine “solely for the purpose of a settlement and does not constitute, nor should it be construed as, an admission of any violation of law.”

In a statement, the company added: “As a leading supplemental insurer in the United States, we are committed to ensuring that our policyholders receive the benefits for which they are entitled. We continue to work with state regulators to ensure all standards are met.”

Many Virginians drop ACA coverage and more likely will, SCC hears

SCC staff says Aqua Virginia’s rate increase request is too high

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One of the nation’s biggest health and life insurance firms has been overcharging Virginians for its accident, dread disease and other supplemental health policies, a State Corporation Commission Bureau of Insurance review found.

As a result, Aflac — American Family Life Assurance Co. — is cutting premium rates on 16 different policies by as much as 35%, its filings with the bureau show.

The cuts will save more than 120,000 Virginia policyholders some $12.6 million a year, the filings show.

In addition, Aflac agreed to pay a $64,000 fine to settle the matter.

“This represents exactly the type of oversight work the Bureau of Insurance does every day to protect Virginia consumers,” said Scott White, commissioner of the bureau.

“When we discovered these supplemental health products weren’t delivering the value policyholders were paying for, we acted to secure premium rate reductions that resulted in real savings to them,” he said.

It started with one of the regular market analysis reviews that the bureau staff conducts to see how insurers do business.

In the review, bureau staff checked six specific Aflac policies that offered supplement coverage when policyholders suffer injuries from accidents, need cardiac care or need to pay a hospital bill.

They found four of the six policies they reviewed weren’t meeting a basic test of fair pricing.

The percentage of premium income Aflac was paying out in claims was low.

That percentage, claims divided by premiums, is called the loss ratio. When it is too low, regulators say it means premiums are too high.

As they asked Aflac about this, bureau staff found a total of 16 supplemental policies had loss ratios well below the minimum required. In addition to the four policies, there were other policies offering similar coverage, as well as policies offering dental, vision and short-term disability benefits.

In Virginia, these sorts of policies are supposed to have loss ratios of at least 50%. Less than half of the money Aflac collected from policyholders was used to pay claims.

Most had been running loss ratios averaging between 30% and 35% since 2019, a Richmond Times-Dispatch review of Aflac rate filings found.

In one year, the loss ratio on one so-called “dread disease” policy — covering organ transplants, heart attacks, strokes and coma — was as low as 14% and averaged 23% from 2019 through 2024. A vision policy’s loss ratio was just 18% one year, and a dental policy that more than 3,300 Virginians bought ranged from 23% to 24% for three years.

Aflac cut the dread disease premiums by 35%, bringing them down to an average of $159 a year. It cut the dental and vision policies’ rates by 20%.

Loss ratios on such supplemental health policies are the lowest set in state law or regulation. Affordable Care Act policies must be priced to produce at least an 80% loss ratio, as is the case for long-term care insurance. Medicare Supplement coverage has to have at least a 65% loss ratio.

Aflac senior vice president Thomas McDaniel said the company is cutting premium rates and paying the fine “solely for the purpose of a settlement and does not constitute, nor should it be construed as, an admission of any violation of law.”

In a statement, the company added: “As a leading supplemental insurer in the United States, we are committed to ensuring that our policyholders receive the benefits for which they are entitled. We continue to work with state regulators to ensure all standards are met.”

Dave Ress (804) 649-6948 dress@timesdispatch.com

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According to S&P Global Market Intelligence, the life insurance industry experienced a 4.3% increase in total direct premiums and considerations in 2025, reaching a record high of $1.09 trillion.

Those numbers are striking when compared to the 14.6% rise in 2024, which was the most rapid expansion in two decades.

The analysis examined individual and group life insurance and annuities, as well as accident and health insurance. Individual life premiums saw a 4.8% growth, driven by select products rather than a broad-based increase. Variable life direct premiums surged by 41.9%, but contributed only 1.4% to the individual life total. Indexed individual life premiums increased by 10.7%, accounting for 13.2% of the total.

Individual annuity direct premiums grew by less than 5.2% in 2025, a fraction of the 21.2% expansion rate in the prior year.

Direct premiums in accident and health increased by 7.8%, down from a 10.3% growth rate in 2024. Private participation in government programs like Medicare and Medicaid fueled expansion, while traditional group benefits products saw modest growth of less than 4% in disability income and dental insurance lines.

Group annuities saw the lone year-over-year decline of 2.3%. This largely reflects the impact of jumbo pension risk transfer group annuity placements in the first quarter of 2024.

Powerful 2024 annuity sales

In 2024, individual annuities took off due to a combination of demographics and market conditions, according to Tim Zawacki, principal analyst, S&P Global Market Intelligence.

“In September of that year, the Federal Reserve lowered interest rates by 50 basis points, driving growth for the industry,” he explained. “It was also a record year for pension risk transfers with jumbo transactions turbo charging the industry’s growth.”

As a result of more annuity products and carriers in the market, the individual annuity market racked up record sales in the last several years. Many consumers purchased annuities with 3- to 5-year terms, which will be ending soon.

“If long-term rates remain elevated, consumers will likely invest this money back into annuities,” Zawacki said.

“The insurance industry (which includes individual annuities) provides strategies to manage wealth and provide principal protection,” Zawacki added. “While the pandemic had an initial effect, today life insurance growth is largely driven by tax incentives.”

The current market conditions lend themselves to an increase in the industry, particularly in the annuity space, he said.

When it comes to life insurance, Zawacki noted that the middle market is under a lot of economic pressure given the high cost of groceries, gas, food, housing costs and other daily expenses.

“Younger people are under a lot of stress with rising home costs and student loan debt. There is a tendency among this group to view life insurance as a discretionary expense and it’s a tough environment for discretionary expenses,” he added.

“Despite this, life insurance products are well-positioned for growth, particularly among the mass affluent who are looking for tax gains. The industry, however, needs to look at how to attract younger consumers.”

What will the future hold for the industry?

“Looking ahead, as long as there isn’t a recession or a spike in unemployment, the dynamics are favorable for the industry to see continued growth in the mid-single digits,” Zawacki said.

Demographics are impacting the industry’s growth with more people in their 50s and 60s making it an attractive environment for retirement savings products.

“It all comes down to supply and demand, which has remained consistent over the last few years,” Zawacki said. “Middle market consumers are struggling while the mass affluent are looking for attractive rates with principal protection.”

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RICHMOND — One of the nation’s biggest health and life insurance firms has been overcharging Virginians for its accident, dread disease and other supplemental health policies, a State Corporation Commission Bureau of Insurance review found.

As a result, Aflac — American Family Life Assurance Co. — is cutting premium rates on 16 different policies by as much as 35%, its filings with the bureau show.

The cuts will save more than 120,000 Virginia policyholders some $12.6 million a year, the filings show.

In addition, Aflac agreed to pay a $64,000 fine to settle the matter.

“This represents exactly the type of oversight work the Bureau of Insurance does every day to protect Virginia consumers,” said Scott White, commissioner of the bureau.

“When we discovered these supplemental health products weren’t delivering the value policyholders were paying for, we acted to secure premium rate reductions that resulted in real savings to them,” he said.

It started with one of the regular market analysis reviews that the bureau staff conducts to see how insurers do business.

In the review, bureau staff checked six specific Aflac policies that offered supplement coverage when policyholders suffer injuries from accidents, need cardiac care or need to pay a hospital bill.

They found four of the six policies they reviewed weren’t meeting a basic test of fair pricing.

The percentage of premium income Aflac was paying out in claims was low.

That percentage, claims divided by premiums, is called the loss ratio. When it is too low, regulators say it means premiums are too high.

As they asked Aflac about this, bureau staff found a total of 16 supplemental policies had loss ratios well below the minimum required. In addition to the four policies, there were other policies offering similar coverage, as well as policies offering dental, vision and short-term disability benefits.

In Virginia, these sorts of policies are supposed to have loss ratios of at least 50%. Less than half of the money Aflac collected from policyholders was used to pay claims.

Most had been running loss ratios averaging between 30% and 35% since 2019, a Richmond Times-Dispatch review of Aflac rate filings found.

In one year, the loss ratio on one so-called “dread disease” policy — covering organ transplants, heart attacks, strokes and coma — was as low as 14% and averaged 23% from 2019 through 2024. A vision policy’s loss ratio was just 18% one year, and a dental policy that more than 3,300 Virginians bought ranged from 23% to 24% for three years.

Aflac cut the dread disease premiums by 35%, bringing them down to an average of $159 a year. It cut the dental and vision policies’ rates by 20%.

Loss ratios on such supplemental health policies are the lowest set in state law or regulation. Affordable Care Act policies must be priced to produce at least an 80% loss ratio, as is the case for long-term care insurance. Medicare Supplement coverage has to have at least a 65% loss ratio.

Aflac senior vice president Thomas McDaniel said the company is cutting premium rates and paying the fine “solely for the purpose of a settlement and does not constitute, nor should it be construed as, an admission of any violation of law.”

In a statement, the company added: “As a leading supplemental insurer in the United States, we are committed to ensuring that our policyholders receive the benefits for which they are entitled. We continue to work with state regulators to ensure all standards are met.”

Dave Ress (804) 649-6948 dress@timesdispatch.com

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