2014 Life Insurance and Annuity Industry Outlook
Getting back on track
More life and annuity carriers are expected to break out of their historical operating molds over the next couple of years in order to make more efficient use of capital and to reach out to under-served consumer segments in innovative ways.
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Insurance firms face obstacles that may be outside of their control in the coming year, but that doesn’t mean they don’t have the ability to shape their own destinies. Consider the following potential game-changing developments for 2014 and beyond. Whether these are opportunities or threats may be entirely up to how each insurance company deals with them.
- Prepare for a more dynamic M&A market
- Carriers looking for new ways to reach prospects
- Regulatory uncertainty leaves many insurers in a holding pattern
- Transforming finance to become business partners
- Carriers look to upgrade systems and talent
- Carriers look to up their game with tech enhancements
For a quick view into our predicted trends, view the infographic.
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.
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. Discover the macro- and microeconomic trends challenging insurers to shake up the status quo.
Download the full report for the Life Insurance and Annuities Outlook or read about the Outlook for Property and Casualty Insurance.