Life insurers need to respond to a transforming marketplace by transforming themselves, their products, their services and their strategies and although that equation can sound fairly obvious, a lot of work has to go into such an overhaul.
That is the conclusion that professional services firm Ernst & Young drew in their Global Insurance Center US Outlook.
One huge component to this overhaul is the restructuring of operations in order to capitalize on the “converging forces” of demographics, consumer needs and product distribution. All this, Ernst & Young contends can be done by leveraging technology to improve current business models.
The report encourages insurers to examine their current books of business and look at them in terms of both generating higher profits and diversifying risks. The end game of this reevaluation should be a balanced product portfolio with no single line dominating its book of business.