Many challenges await us with the increasing age of our Baby Boomers.
Still recovering from the meltdown of 2008, the life insurance industry is also facing a highly volatile market with low interest rates and slow economic growth. Economic pressures are forcing employers and governments to cut back on benefits and eligibility, at a time when people are unprepared for crises or retirement.
Yet in this uncertainty there are clear opportunities. The ongoing transition of financial responsibility from governments and employers to individuals along with an aging population not prepared for retirement suggests profitable growth potential for life companies that can position themselves strongly.
Life insurers can play a major role in helping people meet their retirement needs as the population ages. Life insurers will need to focus on those in a position to invest in retirement products.
Many consumers are also looking for comprehensive retirement plans that reflect their family, employment, real-estate, etc—issues that require much more than insurance products. A huge hurdle for the industry is that products that deal with issues like critical-illness, end-of-life care and retirement options are difficult to understand, suggesting that the sales process needs to begin with consumer education.