2014 Life Insurance and Annuity Industry Outlook
Getting back on track
Life insurers and annuity writers may gain some sales traction in the year ahead thanks to modest economic growth, declining unemployment, and the possibility of an uptick in interest rates. And yet many have begun to realize to sustain growth over the long term, fundamental changes in their business models are necessary in the near term.
Therefore, expect more life and annuity carriers to break out of their historical operating molds over the next couple of years. The goal will be to make more efficient use of capital as well as expand the overall market pie by reaching out to underserved consumer segments in innovative ways.
Whether you prefer to be a pioneer or fast-follower, before too long most insurers will likely have to transform their standard operating procedures. And with growth reemerging as the chief imperative, both in the short run as well as over the long haul, more carriers will be revamping their products, core systems, and distribution options.
While reshaping how they conduct operations can make a big difference in revenue and profitability, carriers also need the right people and capabilities to propel and maintain momentum for innovation. Indeed, talent transformation could ultimately be one of the most important distinguishing features determining how well life insurance and annuity carriers perform in this evolving environment.
To capitalize on emerging opportunities instead of being undermined by the disruptive changes likely to alter the competitive landscape, top insurance executives should be more predisposed towards bigger-picture innovations. Download the life insurance and annuity outlook to discover the macro- and microeconomic trends challenging insurers to shake up the status quo.
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