By Rob Starr, Content Manager, Big4.com
Demographic, macroeconomic and regulatory pressures will continue to transform life insurers’ strategies, products and services in 2013, according to Ernst & Young’s new Global Insurance Center US Outlook.
As the competitive landscape changes, new players are entering the market, the largest carriers are gaining market share and distributors are consolidating. To obtain a sustainable advantage, carriers are evaluating books of business in terms of their ability to generate profits and diversify risks, regardless of the macroeconomic environment. Meanwhile, regulators are evaluating suitability standards that could alter distributor and insurer sales practices. The goal for many companies is a balanced product portfolio, in which no single line dominates the business.
Doug French, Principal, Financial Services and Insurance and Actuarial Advisory Services at Ernst & Young LLP comments:
“Successful players are introducing or re-positioning product offerings that are attractive to consumers and profitable to insurers,” he said . “Insurers are reexamining and strengthening the customer value proposition by leveraging technology to improve business models and gain a competitive advantage. By restructuring operations to respond to the converging forces of demographics, consumer needs and product distribution, they can communicate and engage with customers on their terms.”