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November 10, 2002 at 07:00 PM
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A panel of experts foresees little significant change to the financial services landscape by 2010, says Ram Gopalan, assistant vice president and head of research outreach, LIMRA, Hartford, Conn.
“That doesnt mean there will be no changes. There will, but they will be evolutionary, not revolutionary; they will be slow, not dramatic,” he says.
Gopalan presented the panels findings at LIMRAs recent annual meeting in Boston. The panel of about 40 people included senior home office executives from LIMRA member companies, academicians, heads of other trade associations and outside consultants.
The panel speculates that because the Hispanic population will make up 14% of the entire U.S. population by 2010, there will be significant areas of growth in serving this sector, Gopalan says.
“Hispanics currently own very few insurance products compared to the rest of the population,” he says. And, surveys show Hispanics are interested in buying financial services products.
In 2010, opportunities will also exist in the pension-rollover market, he says.
“Boomers will begin retiring around 2010 and 2011. They have a huge amount of money in 401(k) plans–an estimated $200 billion,” Gopalan says. “Somebody has to help them manage the money to plan for retirement.”
The long-term care insurance market will also be significant in the future, he says.
Driving the opportunities for growth are the aging of the population and consumers attitude toward how they want to buy financial products, Gopalan says. By this he means that in general, consumers will continue to want to buy products from someone face-to-face, and not over the Internet. They will, however, use the Internet to gather information.
