Best's Review: Insurers Scramble to Underwrite Active Older Adults.

OLDWICK, N.J. -- Aging is not what it used to be. People today are living longer and stronger with high expectations for their latter years. This phenomenon has created a new type of insurance consumer, the February issue of Best's Review reports. And this type of consumer will soon be many consumers because the population swell known as the baby boomers is beginning to pass age 60. Insurers have their work cut out for them.

And it's not just financial planners who should be preparing for this particular crowd. Active adults in the their 60s, 70s and 80s, many of whom may still be on the job, will have a huge impact on employee benefits such as disability and group life, workers' compensation, homeowners and personal-passenger automobile.

The February Best's Review looks at the challenges and opportunities insurers should be anticipating in five different areas:

* Workers age 55 and older are two to five times more likely than younger workers to have disabilities related to diabetes, cancer and cardiovascular conditions.

* Medically underwritten immediate annuities may become an important tool as baby boomers seek to create income or protect assets.

* Some personal-lines carriers are researching new rating criteria for older policyholders.

* Improved group life benefits could prevent employee shortages by keeping older workers on the job.

* To sell to older baby boomers, agents and brokers have to introduce a new product via its functional benefits. Baby boomers are used to being in charge and want to know what a product will do for them.

Best's Review is published by A.M. Best Co. for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, such as bankers, lawyers and educators.

To read these articles and more, subscribe to Best's Review by visiting our Web site at www.bestreview.com/subscribe, calling the A.M. Best customer service department at [phone], ext. 5742, or e-mailing your request to [e-mail].

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.