Skip to the content

Procurement Market Intelligence Report

Life Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Life Insurance?

What is the average price of Life Insurance?

This procurement report includes pricing information to help you purchase Life Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Life Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Life Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Life Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Life Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 776 life insurers in the US market, the top four operators account for an estimated 31.4% of total market revenue, signaling a moderate level of concentration. Moderate market share concentration stems from the presence of large and mature companies in the market, such as MetLife, which helps... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Qualifications

How many life insurance policies do you currently have in force?

What is the average size of a life insurance policy you manage?

What licenses do you have that permit you to sell insurance?

How long has your company been operating in the market for life insurance?

Do you specialize in life insurance, or do you also offer other types of insurance?

Financial Stability

What actions do you take to mitigate your risk of bankruptcy? What factors exacerbate your risk of bankruptcy?

What is your capital ratio? How does it compare to industry standards?

How do you ensure that your company has enough cash reserves to honor claims?

What are your credit ratings according to A.M. Best, Standard and Poor's or Moody's?

How have the effects of the coronavirus pandemic impacted your company's profitability and overall financial risk?

Are you experiencing fluctuations in demand as a result of the coronavirus pandemic? What measures are you taking to handle these changes in demand?

Coverage

What is the maximum amount of coverage for a single individual? For a group?

What time periods do your life insurance policies cover?

How does the coverage in your policies differ from those of your competitors?

What types of riders do you offer with your life insurance policies?

What new products or policies have you introduced to address issues brought on by the coronavirus pandemic?

Claims Fulfillment

What is the process for submitting a claim? What types of documents are required in order to submit a claim?

On average, how long does it take your company to pay a claim?

Do you provide monthly reports detailing new claims and enrollees?

What are the processes for disputing a claim?

Could you describe how the pandemic is affecting your ability to pay out claims? What sort of steps is your company currently taking to mitigate the negative impact of the pandemic on your company's claim processing procedures?

Fee Structure

How do you arrive at the premiums you charge clients?

How do you determine the risk of a policyholder? What factors most strongly affect a buyer's risk?

What steps can a buyer take to reduce their risk?

Do you charge any additional fees to clients? If so, what are those fees?

Amid widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Value-Added Services

What discounts do you offer for bundling multiple types of insurance policies?

What other insurance policies do you provide that you think may be of use to me specifically?

How do you maintain your operational efficiency when offering more than just life insurance?

How does purchasing multiple types of insurance policies expedite your underwriting process, if at all?

“Sending out RFPs used to be a nightmare”

Let’s chat about how procurement market intelligence can reduce 
the time you spend issuing RFPs.

Key elements for every RFP

What should my RFP include?

Project Budget

Vendors should include a detailed breakdown of their premium rates.

Buyers should outline any other costs for which insurers are responsible (e.g. mailing).

Buyers should detail any other insurance coverage or related services they are looking to purchase in order to qualify for bundled discounts.

Selection Criteria

Buyers should evaluate the extent to which the coverage meets their needs.

Buyers should evaluate insurers based on their premium rates.

Buyers should evaluate each insurer's experience and financial performance.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g., presentations or final interviews) prior to the contract award.

Buyers should include the date when the contract begins and ends, as well as any options for contract renewal.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The level of supply chain risk in the market for life insurance is moderate. Vendors of life insurance source inputs from a multitude of upstream suppliers, including portfolio management firms, reinsurance providers, copier and office equipment wholesalers, computer equipment wholesalers and third-party administrators and insurance claims adjusters. However, the coronavirus... Subscribe to learn more.

HIGH

MEDIUM

LOW