Modest Growth for Life Insurance Sales Predicted, Low Interest Rates a Concern
ATLANTA, GA, January 9, 2013 - Life insurance
executives surveyed by LOMA for its 2013 Forecast are cautiously
optimistic about sales this year, with several expecting a modest
growth of around 3 percent. However, the executives say low
interest rates are a concern.
"In terms of profitability, the industry will continue to be
challenged by the low interest rate environment, as compressed
margins will continue to present challenges and put pressure on
earnings," said one senior executive.
The executives gave their views on other issues, such as
technology, customer service and structural change:
- They said new technologies such as social media are changing
consumer interactions and are here to stay. Mobile technology
creates improved customer connections and will play an important
role in the industry. And data analytics is beginning to be seen as
having potential for life insurers.
- Customer service is also seen as a key factor. As consumers
become familiar with cutting- edge service in other industries,
they will expect similar service from insurers, one executive
- The executives do not foresee major structural change in 2013,
but some mergers are expected. One official said he expects some
carriers will exit certain markets to focus on core offerings.
The 2013 Life Insurance Forecast is published in the January
issue of LOMA's Resource magazine. The compete Forecast may
be read on the Resource page of the LOMA web site, http://www.loma.org/research/resource.aspx.
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