Posted on 22 Mar 2011
The life industry by 2010 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 products.
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 by LOMA, 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 years.
“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.”