The life insurance industry will have to adapt to demographic and economic changes that will have a direct impact on the manner in which they market and sell their products in order for them to remain relevant when individuals and families contemplate their options for financial planning.
In order for life insurers to capitalize on a $ 10.2 trillion protection gap for the middle market as detailed in a report by Conning Research, predictive modeling and the utilization of social media will be crucial.
The Conning report, Opportunities in Reaching the Middle Market with Life Insurance exposes how glacial and clumsy life insurers have been to realize where sales opportunities are and the best manor in which to take advantage of them.
There has been an abundance of reports and statistics over the last few years detailing the protection gap and the opportunities that accompany it within the middle market. The MIB Life Index, which measures applications for individually underwritten life insurance recently reported a decrease in activity while simultaneously the number of potential customers was growing (there was a 4.7% population increase between 2005 and 2009).
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The report diagnoses a range of issues that have hindered the industry from making the most of opportunities some of which are out of their control and some of which are not. However, there has been dawdling on the part of the industry to adapt when it needs to.