A recent survey suggests that the life insurance industry will continue to thrive with advances in technology, quality service and new product lines to fill the gaps.
According to a poll of executives from LOMA, an organization that aims to advance the insurance and financial services industries, companies will be able to offer more comprehensive financial solutions to customers with help from new technologies.
“There will be a modest increase in sales and profits for our industry as the industry tailors products to fill 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 the minds of many that due to the economic recession, that retirement savings is essential and that life insurance is a number one option in those plans because of loss through company money markets. Income annuities grew last year and will still due to new thinking about retirement.
Life insurance is still an essential part of the package, taking care of you, your family and a most needed addition to a valuable retirement.