Market uncertainties in the insurance industry may be easing somewhat, but new research indicates financial services and insurance providers will continue to be susceptible to outside forces in the years ahead. To stay relevant, carriers will have to adjust. The findings are part of new research from LIMRA, an insurance and financial services trade association.
According to LIMRA, factors external to the financial services industry could further alter distribution models. Fifty-seven percent of industry leaders agree that within the next five years, an outside source will be a disruptive force in the life insurance market, according to a new report.
Recognizing the potential for disruptions, being proactive and altering their business processes and services as needed will serve the carriers well, according to the association. “The outlook has never been brighter for those willing to embrace bold, new strategies,” Jim Kerley, chief membership officer, LIMRA and LOMA, said in a prepared statement. The research and other industry insights will be shared at the upcoming LIMRA 2015 Distribution Conference for Financial Services will be held in Orlando, Fla., Feb. 25-27, 2015.
The association also has identified other trends in the industry, which providers need to account for in order to better serve customers, earn new business and expand opportunity. For example, reaching distracted consumers is a trend ripe for exploration, LIMRA says. “Consumers today are confronted with more financial demands than ever. Younger shoppers in particular realize they need life insurance, but it’s not a priority for them. It’s incumbent on industry professionals to emphasize how life insurance is indeed as relevant today as before,” said Kerley. Other emerging issues involve carriers providing value-added services beyond just their product offerings, and regulatory and compliance developments.
This year’s LIMRA conference has the theme “Realizing Your Potential.” The conference typically draws more than 300 industry professionals who share their strategies for success and growth. The conference hosts executives and others interested in channel growth, productivity, and reshaping distribution in the United States and Canada.
