HARTFORD, Conn., July 13, 2015 /PRNewswire/ -- Long-anticipated growth in Baby Boomer retirement income sales may finally ramp up in the next few years, according to a new study by Conning.
"The life insurance and annuity industry in the U.S. has found the path to growth elusive over the past decade," said Mary Pat Campbell, Vice President, Insurance Research at Conning. "At a time when the industry had expected to be benefitting from the aging population, we are instead seeing a significant increase in the life insurance protection gap. Strategies that have ridden the wave of the Baby Boomers may be stalling, as assumptions developed for that group may not be effective in the changing population. Indeed, the assumptions made of the Baby Boomers only a decade ago may not even pertain to them now, as their needs are evolving differently from previous generations."
The Conning study, "2015 Life-Annuity Consumer Markets Annual" reviews the extent and impact of changing age profiles, increasing diversity, socioeconomic shifts, lifestyle changes, cultural markets, and consumer attitudes.
"While the industry needs to focus on all consumer segments and age groups to generate growth, the Boomer segment has been a specific concern," said Steve Webersen, Head of Insurance Research at Conning. "Retirement income sales have skewed to later years for older Boomers with defined benefit plans, yet younger Boomers typically have only defined contribution plans. The next five to ten years should generate significant retirement income opportunity for insurers as both groups' needs force them to take action. Insurers need to be prepared with marketing and product strategies to seize that opportunity."
Conning (www.conning.com) is a leading investment management company for the global insurance industry, with more than $94 billion in assets under management as of March 31, 2015 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, Conning Investment Products, Inc. and Goodwin Capital Advisers, Inc. Conning's unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning is focused on the future, providing clients with innovative solutions, leveraging its global capabilities, investment experience, and proprietary research. Conning is headquartered in Hartford, Connecticut, with additional offices in New York, London, Cologne, and Hong Kong.