2010 Forecast for Life Insurance Industry Cautiously Optimistic, LOMA Resource Survey Finds
ATLANTA, GA, January 13, 2010 -- Following a
challenging 2009, the 2010 forecast for the life insurance industry
is cautiously optimistic, according to executives surveyed by
LOMA's Resource magazine.
Key decision makers from a cross-section of insurance industry
organizations participated in the 2010 forecast. According to
participants, the overall economic climate will improve relative to
2009, but not by a large measure.
Most companies are predicting 2010 sales growth, premium growth
and profitability to be modest to flat compared to 2009. Profits
will be challenged due to variable product guarantees, battered
investment portfolios and exceptionally low interest rates.
Consumers will get back to the basics of insurance protection and
seek low-cost coverage to protect their families. Key inhibitors,
however, will be fewer, less wealthy, and much more cautious buyers
available for purchasing variable products as well as the changes
in fees, features and guarantees many insurers have made in
response to the economic crisis, which may compound buyer
reluctance to dive back into this market.
Automation technologies that reduce expense, provide faster
processing or improve the field and customer experience-workflow,
straight through processing and automated underwriting, for
example-will continue to take center stage. Insurers also will
continue to explore leading edge technologies-such as
voice-over-Internet communications, wireless tools, workforce
virtualization, smart phones and social media-and if/how they fit
into their larger business strategies.
"In 2010, we will begin to see M&A activity intensify in
both the U.S. and abroad as highly capitalized companies seek to
expand their market share," said Robert Kerzner, president and CEO
of LIMRA, LOMA and LL Global. "Regulatory and legislative changes
will also have a significant effect on how companies operate.
The environment will remain difficult--some companies will thrive
while others will struggle."
The 2010 Forecast is published in the January issue of LOMA's
Resource magazine. The complete article is on-line at http://www.loma.org.
Established in 1924, with 1,200 plus member companies in over 80
countries, LOMA is committed to a business partnership with its
world-wide members in the insurance and financial services industry
to improve their management and operations through quality employee
development, research, information sharing, and related products
and services. To find out more about LOMA and the learning
opportunities it offers, visit LOMA's Web site at www.loma.org