Looking Forward to 2025
December Newsletter | By: Ian Sachs, CFP®, CLU®, ChFC®, CEPA
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We always like to end the year on a high note! Here’s a quick summary of some remarkable breakthroughs and positive outcomes in the world, an outlook for 2025, and a look at the current and future state of the life insurance industry.
Remarkable Breakthroughs and Positive Outcomes from 2024
- Using AI to detect cancer, Parkinson’s, and autism. A new AI tool can scan patients’ medical records for hidden signs of cancer. The detection rate in GP surgeries using the tool surged to 66%. Elsewhere, an AI-enhanced finger-prick test for Parkinson’s was found to predict the disease seven years before the onset of symptoms, and an AI model helped spot autism in children without the need for extensive assessments.1
- Seeing and hearing for the first time. A British girl who was born deaf is able to hear unaided after receiving gene therapy treatment which was one of the biggest medical feats celebrated this year. An American man received the world’s first whole-eye and partial-face transplant.1
- Conservation. A new study found that conservation interventions – including creating protected areas and eradicating invasive species – boosted biodiversity, or slowed its decline in most cases (66%), compared with no action taken at all.1
- Children and social media. A global movement to protect childhood from smartphones and social media took off this year.1
A Positive Outlook for 2025
- Centenarians. An estimated 100,000+ Americans were 100 or older in 2024. The U.S. centenarian population is expected to quadruple over the next 30 years.2
- Economy. Business investment is projected to increase by 3.9%. Markets expect that the incoming administration will further boost the attractiveness of business investment.3
- Consumer Sentiment. Consumer optimism in the U.S. increased 6% in Q4. This surge in positive sentiment was likely fueled by encouraging economic data and a stock market rally. This rise in optimism spanned all income levels and genders.4
- Costco Hotdogs. Costco’s hot dog-and-soda combo continues to remain $1.50.5
The Current and Future State of the Life Insurance Industry
- Indexed Universal Life. IUL insurance became the most popular product in the life insurance industry. With new premiums reaching $897M – a 4% increase year-to-date – IULs outpaced other life insurance policies.6
- Industry growth. Overall, the life insurance industry reported $18 billion of net income, a 7% increase compared to the first six months of 2023. Total direct premiums increased 15% to $700 billion. Life industry cash and invested assets increased 3% to $5 trillion.7
- AI fuels underwriting innovations. A majority of carriers now offer accelerated and simplified underwriting processes. Generative AI and large language models (LLMs) can revolutionize underwriting by summarizing and categorizing data, incorporating new data sources, and conducting application completeness checks. These advancements have also sparked greater interest in individual life insurance among younger consumers.8
- Embracing the digital age. The lagging customer experience of the past has been replaced with fast, intuitive digital experiences that reward consumers with the policies they want while protecting insurance providers at the same time.9
- Increasing popularity for advanced estate planning. Implementation of life insurance trusts can provide tax-efficient wealth transfer strategies. The approaching sunset of the Tax Cuts and Jobs Act in 2026 is driving significant activity in estate planning. There is increasing popularity of Spousal Lifetime Access Trusts (SLATs) consideration of life insurance as an alternative to large lifetime gifts.10
On behalf of the Risk Resource team, we thank you for your continued trust and confidence in us. We have tremendous gratitude for all our new clients and those who’ve been with us for years, and even decades. When it comes to your business and estate planning needs, we know there are many choices when it comes to life insurance. It’s our greatest honor that you have chosen us as your trusted partner.
From my family to yours, we wish you a happy, healthy, and joyous holiday season and peace for all in 2025. See you in the New Year!
All the best,
Ian Sachs, CFP®, CLU®, ChFC®, CEPA
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1 – https://www.positive.news/society/what-went-right-in-2024-the-good-news-that-mattered/
2 – https://pewresearch.org/short-reads/2024/12/06/striking-findings-from-2024/
5 – https://ktla.com/news/consumer-business/costco-hot-dog-combo-price/
6 – https://corporateinsight.com/year-in-review-top-three-trends-in-life-insurance
7 – https://content.naic.org/sites/default/files/life-2024mid-year-industry-commentary.pdf
9 – https://insurancenewsnet.com/innarticle/key-trends-shaping-the-life-insurance-industry-in-2024
10 – https://kazinsurance.com/state-of-life-insurance-industry-september-2024/
