There's hope yet for the life-annuity industry. Although insurers are still struggling with the fallout from the economic crisis, a report from Conning Research and Consulting found that despite short-term issues like rebuilding capital and changing regulations, the long-term outlook for the industry was positive.
"We project that surplus plus AVR will increase 23 percent to $337 billion by 2011 as the industry adapts to the new environment and due in part to additional capital paid in to the industry," Stephan Christiansen, director of research at Conning said in a press release. "Additionally, we forecast premium growth through 2011 based in part on demand stimulated by estate planning, a focus on savings and more conservative protection needs, and by a need for more stable investment alternatives."
