Advances in technology and the ability to provide comprehensive financial solutions are going to drive the pace of change for the life insurance industry, according to a new survey from LOMA.
Top industry executives told LOMA they see advancements in service capabilities, along with the Internet becoming a more important service delivery mechanism. The use of mobile devices as a communication mechanism, and 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.
As for life insurance products, the basic stable 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. Development will center on hybrid (combination) products.
Responding to the financial crisis, industry executives believe consumers will continue to seek out guarantees and companies will compete aggressively to provide those guarantees. Considering there are more than 3 million baby boomers turning 60 this year, execs predict 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, according to LOMA's findings.
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. LOMA says the producer that excels here will partner with experts from various disciplines, such as trusts, tax and elder care.
"Over the next 10 years, advancements in service and technology will continue to transform our industry," said Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global, in a released statement. "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
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