10 Ways COVID-19 Is Affecting the Life and Annuity Distribution World

Some insurers have not yet provided formal responses, but some have responded with statements that describe, for example, how the companies will handle travel to China in life insurance underwriting, what the companies are doing about their own employees' travel, and what kinds of digital tools the companies can use to communicate when meeting face-to-face is impossible.

6. Life distributors may be having a harder time communicating with the retail producers.

Milner noted in his letter to NAILBA members that many insurance marketing organization meetings, agency events, and industry conferences have been canceled, postponed or turned into online events.

At this point, NAILBA is still expecting to hold its annual meeting starting Nov. 18 in Hollywood, Florida, Milner wrote.

Milner suggested that one solution might be for some life distributors to make their events part of the NAILBA meeting.

"We are in the business of relationship building and management," Milner wrote. "While several online options can assist during these difficult times, face to face meetings in a clean environment remains an utmost necessity."

7. Falling interest rates may be creating a short, one-time increase in product sales.

The Federal Reserve Board has tried to lower the interest rates it controls in an effort to help businesses and investors get through COVID-19-related lockdowns, quarantines and supply disruption.

Many life insurers are responding by increasing prices for interest-sensitive prices, pruning benefits, or ending product sales.

The life insurers have set some of the product change dates a few weeks in the future. That means that some consumers who act quickly may still be able to get products with the old, more attractive prices and terms.

8. Increased use of COVID-19-related "shelter in place" orders and curfews may be favoring organizations that can operate without in-person meetings.

Ethos, for example, can underwrite life insurance using a system that relies on access to digital data sources, not paramedical exams.

"The insurtech/online way of processing applications is better positioned to respond to this uptick in interest compared to traditional providers, since customers don't need to leave their home to get coverage," Murphy said. "There's no need to meet with live agents or to visit a doctor, or have someone come to your house."

But the current situation is also forcing distributors and retail producers to polish virtual meeting details.

Allianz Life, for example, has sent its sales representatives a guide talking about the rules that apply to sales of indexed annuities through virtual meetings.

Reps can sell indexed annuities through Skype or similar services, but a rep has to verify a client's identity using a picture ID, the company says.

"Producers must view the client and their valid, legible, and unexpired government-issued picture information, verify their identity through the videoconference, and record the information in the Customer Identification Verification section of the Financial Professional's Report," according to the Allianz Life guide. "The applicant's ID must be matched to the face of the individual during the video call."

9. The current situation may be giving agents a good opportunity to talk to consumers about the value of insurance, and of agents.

Nicholas Mancuso, a life insurance specialist at Policygenius, said in an emailed comment that agents can help answer many common consumer questions about the COVID-19 pandemic, such as whether life policies protect the insureds against pandemic viruses, and how the current travel restrictions might affect someone's life insurance application.

Paying a death claim related a pandemic is just one of the many ways life insurance policies can pay out and protect families, Mancuso said.

Mancuso is telling consumers that, even in an outbreak, they should still aim to get the right amount of coverage for the right amount of time.

"An experienced agent can help you navigate the application process as the situation evolves," Mancuso said.

10. Life insurance community players are trying to do their part to persuade people to take experts' advice seriously.

Udell, at AccuQuote, is encouraging consumers to read an article about the importance of protecting older people and people with health problems from COVID-19, and of keeping the flow of severe COVID-19 infections down to a level that hospitals can handle.

"We strive to protect families every day in our line of work," Udell said. "If there are elderly or at-risk folks in your area, of course, they should do everything possible to avoid contact with infection. So, check on them, and make sure they know how to stay safe. The measures being taken nationwide now are being implemented in order to 'flatten out the infection curve' and ease the strain on our already inundated health care system."

— Read Aflac Describes Covid-19 Risk Management Efforts, on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook, LinkedIn and Twitter.