Evolution of Life Insurance Industry to Accelerate, says LOMA Survey
ATLANTA, GA, March 9, 2010 - The long-term
outlook for the life insurance industry is for a faster pace of
change, particularly in the use of technology. That was the
conclusion of a survey of top industry executives by LOMA.
The executives were asked for their opinions on what the
industry will look like10 years from now. Executives highlighted
advances in technology as well as companies' ability to provide
comprehensive financial solutions to their customers as drivers of
Service capabilities will continue to advance, and the industry
will see the Internet become an even more important service
delivery mechanism. The use of mobile devices as a
communication vehicle will become standard. Push technology
(push alerts and push service) will be also become standard.
Telepresence and teleconference will enhance collaboration
and communication among home office employees and the field force.
The basic stable of life insurance products will stay the same,
but features and benefits will continue to evolve as companies try
to address performance guarantees, fee disclosure, de-risking and
longevity. Product development will focus on hybrid (combination)
products. In response to the financial crisis, industry executives
believe consumers will continue to seek out guarantees and
companies will compete aggressively to provide those
guarantees. With more than 3 million Boomers turning 60 in
2010 alone, the retirement income space will grow rapidly.
Companies will work to find creative and efficient ways to
deliver basic products to the mass market, including electronic
distribution, mass marketing and work site marketing. Success
in the affluent market will depend upon the availability of
sophisticated products coupled with customized, high-touch producer
support. Success in the retirement income market may require a
shift in producer mindset, moving the focus from selling product to
providing solutions. The producer that excels here will
partner with experts from various disciplines, such as trusts, tax
and elder care.
"Over the next ten years, advancements in service and technology
will continue to transform our industry," said Robert Kerzner,
president and CEO of LIMRA, LOMA and LL Global. "While
technology is the enabler to reach more consumers through the
Internet, the ability to integrate data across the organization
will afford companies the ability to engage in predictive modeling,
data mining and forecasting. It will provide them a
360-degree view of their customers, which will better serve the
customer and improve companies' productivity."
The findings are published in the March issue of LOMA's Resource
magazine. The complete article may be read on the Resource section
of the LOMA Web site, www.loma.org.
About LOMA: 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.
Contact: Ron Clark, LOMA, 770-984-3718