Against a backdrop of stagnant industry growth and technological innovation, the US life insurance industry has begun to experience a shift in the balance of power, away from distributors and manufacturers and towards the end consumer.
Technological advances embraced by other financial service industries have created a consumer base that is armed with more information and that expects a certain level of service. As an industry that has also been challenged by external factors such as low interest rates and an uncertain regulatory environment, US life insurers will need to find ways to answer the needs of these end consumers to foster industry growth.
(1) Simplification in product design and processes
(2) Increased prevalence of combination products with accelerated benefit riders
(3) Underwriting advancements and streamlining
(4) Changes to the advice model
(5) Internet distribution