BACKGROUND
New York Life Insurance Company was found on April 12, 1845. In 1856, New York Life’s assets exceed $1 million. During the Civil War, New York Life’s president Ogden stand firm on the company commitment to pay legitimate claims, North and South. Throughout the war, the company continues to pay death claims. In 1894, the time when gender equality is rare; New York Life becomes the first insurer to charge women the same premium rates as men while other insurers refused to do the same. New York Life is America’s largest mutual life insurance company. They “provide insurance, investment, and retirement solutions along with expert guidance to help people to achieve lifelong financial well-being” …show more content…
It is a major life insurance provider. They focus on whole life insurance policies because the cash value of whole life insurance products guaranteed to grow year after year no matter if it is in good times or bad of the economy. (Marketline: New York Life Insurance Company, 2016, p. 16).
The company lacks the scale to compete with large competitors in the market. For example, the record shows the revenue of New York Life is $26,127 million in 2015 comparing to MetLife and Prudential Financial, they are larger in size, operations and coverage. (Marketline: New York Life Insurance Company, 2016, p. 17). Thus, the company that is relatively smaller than the competitors could turn out to be a disadvantage in the fiercely competitive marker.
A large opportunity in the company is the expansion in other countries, which it would provide more opportunity for people to join New York Life and it would make it easier for agents to move around the world and still be able to work. Also, demographic dynamics could boost demand for long term care. “The US Department of Health and Human Services estimates that 70% of Americans over the age of 65 will need long term care services in their lifetime.” (Marketline: New York Life Insurance Company, 2016, p. 17). That is why now long term care insurance is considered essential to proper financial