Life Insurance Industry to Use Technology Moving Forward

The long-term outlook for the life insurance industry is to use technology moving forward. That was the conclusion of a survey provided by top insurance industry executives at LOMA.

Some executives were asked for their opinions on what the industry will look like in 10 years. They highlighted advances in technology as well as companies’ ability to provide comprehensive financial solutions to their customers as drivers of this change.

Service capabilities will continue to advance and the Internet will become an even more vital 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 seek out guarantees and companies will compete aggressively to provide those guarantees. With more than 3 million baby boomers having turned age 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 worksite marketing. Success in the affluent market will depend upon the availability of sophisticated products coupled with customized, high-tech 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.”

By Life Office Management Association (LOMA)

Want to learn more about life insurance? Read our article The Most Frequently Asked Life Insurance Questions.

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