Fast, flexible life insurers that know how to work with independent distributors should have a bright future.
Donna Kinnaird, president of Swiss Re Life and Health America Inc., Stamford, Conn., made that prediction here at an insurance industry conference organized by KPMG L.L.P.
Life insurers have had trouble increasing their share of U.S. retirement assets since 1990, and their return-on-equity ratios have lagged behind ROEs at banks and diversified financial services firms, Kinnaird said.
But life insurers are in a great position to meet consumers’ needs going forward, Kinnaird said.
Among the typical life insurer’s strengths, Kinnaird said, are underwriting skills, a license to underwrite risks, an understanding of long-tailed risk, strong capitalization and access to capital markets.