The Life Insurance Industry: 10 Years From Now

LOMA RECENTLY ASKED EXECUTIVES TO WEIGH IN ON THE LIFE INSURANCE INDUSTRY’S FUTURE. SOME OF THEIR PREDICTIONS:

FEWER COMPANIES

IF INTEREST RATES REMAIN LOW, COMPANY PROFITS WILL FEEL THE PRESSURE. SOME INSURERS MAY DIVEST OR BE BOUGHT OUT BY COMPETITORS.

DISTRIBUTION CHALLENGES.

ATTRACTING, EDUCATING AND RETAINING NEW ADVISORS WILL BE KEY. [FOR MORE ON THIS, CHECK OUT THIS ISSUE ‘S SPECIAL REPORT ON BRIDGING THE EDUCATION GAP, STARVNG ON PAGE 34.]

MORE COMBINATION AND FEE-BASED PRODUCTS.

PRODUCTS THAT LUMP TOGETHER LIFE INSURANCE, ANNUITY, LONG-TERM CARE AND OTHER SOLUTIONS COULD BECOME THE NORM. NEW REGULATIONS, LIKE FIDUCIARY-TYPE STANDARDS, COULD MEAN A RISE IN FEE-BASED SALES.

A MORE ATTRACTIVE MIDDLE MARKET.

SOME EXECS BELIEVE THE FUTURE WILL BELONG TO COMPANIES ABLE TO TAP THE MIDDLE INCOME MARKET, LIKELY BY USING THE INTERNET AND SOCIAL MEDIA. [SEE “HOW TO REACH AND TEACH THE MIDDLE MARKET” ON PAGE 36 FOR T7PS ON ANRACTING MIDDLE MARKET CLIENTS.)

CHOOSY CONSUMERS.

CUSTOMERS WILL CONTINUE TO SEEK OUT TOP-OF-THE-LINE COMPANIES, THOSE WITH QUALITY PRODUCTS, EXCELLENT CUSTOMER SERVICE AND KNOWLEDGEABLE PROFESSIONALS.

SOURCE: LOMA, “OUR INDUSTRY IN 10 YEARS: WHAT’S AHEAD?”