Distribution

The insurance industry in Puerto Rico had a compound-annual-growth-rate of 5.8 percent between 2007 and 2011, despite a contracting national economy, according to a report from Timetric, a provider of online data, analysis and advisory services on the financial services industry. However, opportunities for further foreign investment and sustained growth in Puerto Rico are limited, due to the high rate of insurance penetration, according to Timetric’s “The Insurance Industry in Puerto Rico, Key Trends and Opportunities to 2017.”

Growth strategies aimed at baby boomers may be losing their effectiveness among younger consumers, as the population becomes more racially and ethnically diverse, according to “Life-Annuity Consumer Markets Annual,” from Conning. Additionally, generational attitudes toward financial services products and technology are not only different, but evolving.

National Life Group has selected iGO e-App to automate the marketing, selling and processing of its diversified life and annuity products.

Cyber coverage levels also increased according to the report. Across industries, limits purchased in 2012 averaged $16.8 million, a 20-percent increase over 2011. Communication, media and technology companies led other industries in terms of average limits purchased, at $33.4 million, and the rate of increase, which was nearly 36 percent.

With persistently low interest rates continuing to dampen profitability, group life/annuity/voluntary benefit insurers are investing in benefit and policy administration systems, customer and agent portals, and easy enrollment capabilities to increase profits, according to “Business and Technology Trends: Group Life/Annuities/Voluntary Benefits,” a report from Novarica.

Armed with analytics, insurers should be able to make better business decisions more quickly and mobilize teams to connect better with customers, leading to success and growth, according to PwC.

While connectivity improves, conflicting financial priorities and rekeying data is still a problem for many insurers and agents, SMA finds.

Critical illness insurance covers more diseases than in the past and is increasingly marketed as a financial protection product.

Building IT/business alignment into business operations and a sense of urgency are two keys to success, according to panelists at Celent’s recent Innovation & Insight Day in Boston. Making legacy systems a thing of the past also helps.

CEO Robert Benmosche says the insurer will put a concerted effort toward re-establishing AIG throughout the world with its life-insurance product.