BGAs Ask: Will ROP Term Survive

Carriers are pulling return of premium (ROP) term products or raising rates significantly because of pressure on reserves and possibly because of an NAIC rule going into effect the end of this year.

So far, ING is canceling its basic ROP term option, Genworth is withdrawing its product and AIG’s American General is raising its rates by about 50 percent. Many expect more of the same in the coming months, with some making even more dire predictions.

BGAs Ask: Will ROP Term Survive
Source: Insurance News Net