The main goal of the industry is to use the available capital efficiently besides expanding the overall market reach. The carriers want to achieve these goals by reaching out to the hitherto undeserved segments of the market via innovative and effective strategies. Sadly, for the industry the erstwhile lucrative products no longer remain so. Similarly, operating strategy tweaks and niche small markets today are failing to give sufficient returns. Resultantly, carriers today have no other option but to new look for new ways and innovative strategies for helping the market to bounce back and net in increased returns in the New Year.
The only way to achieve this according to the insurance industry is to keep things simple for attracting the audience back or tap potential hitherto not considered. One of the most under penetrated markets until now is the Generation X and naturally, the carriers are all set to shift their focus and target this group without further ado. They seem like tempting targets for annuity, life agents, and carriers besides other intermediaries who may be looking to increase their market base. During the past years, more carriers bringing in care long-term benefit riders with offered policies in order to enhance base life, policy appeal.
However according to the market watchers it is surely going to be a tall task for carriers which is much more than simple and subtle changes to smoothen the roughened edges. Analysts believe that insurance industry needs to consider a wholesale revamping involving computer core systems, distribution channels, and different products in order to get the desired results. In 2014, the industry will also have to face structural challenges related to recruitment and talent management.
Mutual fund, high-tech companies, hedge funds, and investment banks all compete together for recruitment from the same talent pool. Naturally, annuity and life carriers many times need to do with shortages of skilled workers and this need to change in the New Year.
