Despite Facing Challenges, Life Insurance Industry Executives Foresee Opportunities in 2012
ATLANTA, Jan. 10, 2012 /PRNewswire/ -- Despite several challenges facing the life insurance industry, executives anticipate opportunities in 2012.
LOMA interviewed a panel of top executives about their predictions on sales, distribution, use of technology and social media, and regulation over the next 12 months. These interviews were collected for LOMA's annual industry forecast, which is published in the organization's award-winning, monthly publication, Resource Magazine.
Overall, the panel agreed that profitable growth is a top priority. However, some of the executives believe that insurers will need to revisit their brand and growth strategies, challenge prevailing industry norms and leverage consumer marketing experience from outside of the industry to develop new veins for growth.
An ongoing issue the industry will continue to encounter is shrinking distribution. As fewer financial advisors offer insurance as a part of their practice and traditional life insurance producers grow older and retire, insurers will need to find innovative ways to attract college grads and young workers into the industry.
However, the executives surveyed believe continuing consumer demand for safety and guarantees and a growing need for reliable retirement income solutions will offer companies opportunities to expand and grow their life insurance and annuity product lines – especially in markets where these products are not sold today.
Technology will play an important role in addressing the marketing and distribution challenges identified. The panel highlighted technologies like mobile applications, cloud computing and advanced/predictive analytics as having the greatest potential to help the life/annuity industry grow. Mobile computing is quickly becoming a priority, because advisors and customers expect to be able to connect with companies and have immediate access to information. Social media and the Internet will continue to be vital to companies to reach prospective clients and advisor candidates as well as for service.
The Forecast for 2012 is featured in the January issue of LOMA's Resource magazine. The entire forecast may be read on the Resource section of the LOMA website, www.loma.org
Established in 1924, with 1,200 plus member companies in over 80 countries, LOMA is committed to a business partnership with its world-wide members in the insurance and financial services industry to improve their management and operations through quality employee development, research, information sharing, and related products and services. To find out more about LOMA and the learning opportunities it offers, visit LOMA's Web site at www.loma.org