According to a recent survey, the life insurance industry will continue to thrive as technology advances, quality service improves, and new product lines fill gaps.
Companies will be able to offer more comprehensive financial solutions to customers with the help of new technologies, according to a poll of executives conducted by LOMA, an organization dedicated to the advancement of the insurance and financial services industries.
“Our industry will see a modest increase in sales and profits as it tailors products to specific market gaps and continues to focus on low-cost niche market opportunities and/or alternative distribution channels,” said Doug French, Managing Principal, Insurance, EY.
“On the life side,” says one executive, “the name of the game is product innovation. The insurer that can create new hybrid products and combine the right set of features to address specific market needs will be successful.” As consumers look for insurance solutions that can meet multiple needs and contribute to financial security later in life,” says another, “we predict continued growth in products with living benefits, stable distribution, and linked benefits such as long-term care services.
There is definitely a shift in many people’s minds that, as a result of the economic downturn, retirement savings are essential, and that life insurance is a top priority in those plans due to losses in company money markets. Income annuities increased last year and will continue to do so due to new retirement thinking.
Life insurance is still an important part of the package, protecting you and your family and providing a much-needed supplement to a valuable retirement.