2025 US Life Actuarial Trends

by Taylor Dever
Managing Director, USA at Acumen Group

Regulatory Impacts

Although many major changes from the last few years such as IFRS17 and PBR are fully implemented and running smoothly, the ever-changing regulatory environment will still impact 2025 resource planning and strategic initiatives. Ongoing LDTI implementation work and parallel runs are top of mind for many organizations. In addition, with VM-22 field testing completed, the results will now be implemented into the final regulation which is tentatively scheduled for a 1/1/26 effective date.

Actuarial Technology

While well-known modeling software like MG-ALFA, Moody’s AXIS, and FIS Prophet remain prominent, other options such as Aon’s PathWise, Stoch Analytics’ Atlas, and Slope Software are getting a lot of attention. Alternatively, some companies are opting to implement a proprietary, homegrown system based on a specific coding language such as Python or R. Actuaries will play a key role in deciding which systems and tools are best suited for their company’s unique needs and priorities.

Reinsurance

The reinsurance landscape continues to evolve, with the Bermuda market showing no signs of slowing down and Cayman emerging as a viable alternative. The BMA and CIMA will likely continue to adjust governance and expectations for insurers, and any major changes could have an impact on a large portion of the market. As an alternative to offshore options, some companies have opted to establish captive reinsurance entities in the US. One example from 2024 is Jackson National creating Brooke Re, a Michigan domiciled captive reinsurer, to reinsure inforce and future guaranteed benefits of their VA business.

Product Development & Innovation

This year, many organizations expect continued growth of annuity products such as FIA, MYGA, and RILA. Acumen’s team has experienced an increased interest from our clients in annuity pricing talent as a result of the popularity of these products. Due to changes in customer expectations, new technology, and regulations, it is more important than ever to deliver flexible and personalized products to consumers. Whether the innovation comes into play in the product specifics or distribution strategy, insurers need to be constantly improving to stay ahead of competitors.

Mergers & Acquisitions

In 2023, the industry saw the lowest deal value volume in global M&A transactions since 2013. After a modest 8% increase in 2024, sentiment in the market for 2025 is optimistic driven by reduced interest rates, strong equity markets, and the resolution of several national elections. This year should show an increase in activity, especially given the continued interest in the industry from private equity firms.