Posted by (American Life Insurance Guide 06/07/2023 News)Global Atlantic Financial Group(Global Atlantic, also known as Global Atlantic Insurance) announced that effective July 2023, 7, it will suspend the sale of itsAccordia Life Insurance CompanyIssued index life insurance products.
©️Global Atlantic official website
The news may confuse or worry some policyholders who hold or are preparing to apply for these insurance products.Global Atlantic said in a statement that the decision will not affect existing life insurance policyholders.
For those policyholders who are considering purchasing these insurance products, they need to submit their applications before June 2023, 6, the announcement said.For those policyholders who have already applied for these products, policy details will need to be viewed through your insurance financial staff and customer portal.
After June 2023, 6, links to new business tools and related product webpages will be disabled for all financial brokers.
Introduction of Global Atlantic Financial Insurance Group
Global Atlantic Financial Insurance Group is well-known in the Chinese financial community for its "foreigner underwriting business", and is known in the industry as one of the very few American insurance companies that "can be insured as soon as you get off the plane".
This decision may have a certain impact on the overseas Chinese community, because the number of non-US residents (foreigners) personal insurance policies accounts for a certain proportion of the global Atlantic Personal Index insurance holdings.
Sales of Global Atlantic Financial Insurance Group's IUL index insurance products have been declining for the past few years, while theirAnnuity insuranceand sales of other products continued to grow.
OnAmerican Life Insurance Guide August 2020ReportIt pointed out that Global Atlantic Financial Insurance Group has been acquired by private equity group KKR at a price of $44 billion.
In July 2022, according to insurance dealers toAmerican Life Insurance GuideAccording to the feedback, Global Atlantic has gradually stopped the life insurance business for foreigners.
(>>>Related reading:Newsletter｜Global Atlantic Financial Insurance Group was acquired for $44 billion )
Affected Products and Industry Reviews
From August 2023, 7,Global AtlanticWill temporarily withdraw from the personal index insurance sales market.
The decision mainly affects the following three index insurance products that are still on the market today:
- Lifetime Builder ELITE IUL (evaluation)
- Global Accumulator IUL (evaluation)
- Lifetime Foundation ELITE IUL (evaluation)
"We've found that Global Atlantic has some issues with the life insurance business, and it's been a while. (I) have had some issues with their new business, policy loyalty is not high, and years before this news came out, Their customer service has been problematic, so I'm not surprised." Partner, Simplicity GroupChristopher YenIn an interview with American Life Insurance Guide, he said, "This problem has been foreshadowed. In the past 18 months, most of their sales executives have left the company. We have been hesitant to promote Global Atlantic's products. , I believe our agency brokers will agree with our approach."
Three options for overseas policyholders
According to the reports of the American Life Insurance Guide Network in recent years, in the fierce market competition, insurance brands continue to withdraw or sell life insurance business, which has caused confusion and concern for insured families holding such policies.
In 2022,Zurich Insurance Group announced that it has ceased its index life insurance business in the United States;In 2021, followingAllstate Statewide to exit life insurance and annuity businessRear,Principal (Principal Insurance of the United States) announced its withdrawal from the personal life insurance market in July;In 2018,Voya Financial announced its exit from the individual life insurance market.
You can clickThis link from American Life Insurance Guide©️, to view the news of insurance company brands that have withdrawn from the U.S. individual life insurance market in recent years.
After Global Atlantic Insurance announced the suspension of business, Global Atlantic overseas policyholders faced the same situation as Voya insurance policyholders in earlier years.Is it to continue to hold?Get out of the contract?Or switch contracts?For such policyholders, they are faced with these three choices.Policyholders can contact third-party life insurance financial advisors to audit contract performance andPenalty period assessment, to determine the appropriate coping strategy for you. (full text)
