Robert A. Kerzner, CLU, ChFC, president and CEO of LIMRA, LOMA and LL Global, opened his speech at the LIMRA Annual Conference with a question that advisors have been asking since joining the industry: “How do we win the hearts and minds of today’s consumers?”
On paper, it might seem like a simple question, but due to shifting demographics and consumer buying patterns, there’s no simple answere. Kerzner said, “while the industry does a good job providing security for families, things are different today. For starters, the definitions of family and American household are very different than in the past.”
According to U.S. Census Bureau data, the traditional household — a married couple with children —represented 40 percent of all households in 1970 and now stands at only 20 percent. Single parent households have more than doubled since 1970 and only 51 percent of people are getting married compared to 72 percent in 1960. Those who marry do so later. In 1960, half of all U.S. households had children. By 2010 the number was down to 1 in 5 households.
In addition, shifts in ethnic demographics are happening and will continue into the future. The U.S. Hispanic population is expected to grow 125 percent by 2060, and the Asian population will more than double by 2060.