Prudential Tips ‘First Domino’ By Suspending GUL Product: Analyst
July 8, 2020 by John Hilton
Prudential Financial is pulling its UL Protector product from the market, effective July 13, and one industry analyst expects many more products to join it on the sidelines.
The problem is that ultra-low interest rates make it difficult to support guaranteed universal life designs, explained Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink.
“The reserve requirements for these products are steep, and when interest rates are dim, it can tough to maintain profitability,” she said. “This is just the first domino to fall in the insurance Rube Goldberg machine. Others will suspend products if the current rate environment continues.”