What Will the Life Insurance Industry Look Like in 2020? -- Industry Leaders Share Their Views on The Future and How Insurers Will Thrive.
ATLANTA, Ga., March 9, 2011-By the year 2020,
the industry will bifurcate into large conglomerates, serving a
broad and increasingly international market and niche carriers,
which will differentiate themselves by leveraging deep expertise
and customized product features for their targeted audiences or
This is one of the predictions made by the panel of senior
executives from leading insurance companies surveyed by LOMA in
December 2010. The report, entitled: "What's Ahead:
Our Industry in 10 Years," is featured in the March issue of
LOMA's Resource magazine.
Overwhelmingly, the panel agreed that the industry will
experience significant and accelerated change over the next 10
"Looking forward, change is likely to continue at an
accelerated pace that becomes the norm positioning companies that
are agile, innovative, responsive and strategically focused for
profitable growth," noted Steve Callahan, senior consultant and
practice development director for the Robert E. Nolan Company.
Panelists also noted that the ever-changing and diversified
consumer population will impact companies' strategies.
"I expect to see more interest in the middle market,"
commented Michael Fanning, MassMutual executive vice president.
"LIMRA's research indicates that nearly a third of U.S. households
have no insurance, the highest percentage in four
decades. Expanding more broadly to the larger-and more
traditionally underserved-U.S. population and developing solutions
that leverage brand, product, technology and customer service that
speak to this demographic group will be the attributes of a winning
company in 2020."
Of course, the executives believe legislation will drive many
different changes in the industry.
"Legislation may well create a far different landscape for
us in 2020," observed Peter Golato, senior vice president,
individual protection, Nationwide Financial Services. "Commission
disclosure in New York may lead to the advent of more fee-based
products should the legislation spread to other states. Fiduciary
type standards may pass for life insurance producers, which may
also spur fee-based sales."
The long-term predictions were made by a cross-section of top
insurance company leaders and industry analysts. To read the entire
article, please visit
"What's Ahead: Our Industry in 10 Years."
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.