Life insurance industry must adapt to change or it will fail
The life insurance industry is facing a changing landscape, new risks, and emerging trends that could have a drastic effect on business. A new report from PwC US, an industry-focused consulting firm, suggests that life insurance companies will need to adapt to these changes if they wish to survive the next decade. The report, titled “Life Insurance 2020: Competing for the Future,” highlights several of the emerging factors that could have major influence over the life insurance industry.
Report highlights challenges facing life insurance companies
The report notes that life insurance companies will have to adapt to major social, technological, environmental, economic, and political factors if they want to remain in business. The report also suggests that these companies will have to target key business opportunities, especially those in emerging markets, to remain solvent in the years to come. Though the life insurance industry has been showing some signs of major growth in recent months, the report claims that insurers will be faced with challenges that could ruin business over the next 10 years.
Insurers see gains in emerging markets
Life insurance is already finding serious traction in emerging markets around the world, but is on the decline in developed countries like the U.S. and Europe. The report shows that life insurance amongst Americans has been slowly decreasing over the past 20 years and is expected to continue doing so for the foreseeable future. The report indicates that insurers will have to actively identify and handle threats as they emerge if they want to continue being viable in the markets they already hold a strong presence in. Failure to adapt could literally put insurers out of business.
Insurers must overcome challenges to find success
Insurers may need to focus more on working closely with consumers and businesses in order to develop new solutions that are better suited to the changing environment. Life insurance companies trying to enter into new markets are expected to be faced with staunch competitions, thus are being advised to create valuable products that will win the favor of consumers in those markets.
