A recent study from Towers Watson has unveiled some of the top challenges that life insurance companies face for growth, profit and risk in 2015.
When asked what was most concerning for the company, achieving growth objectives or achieving profit and risk objectives, 33 percent replied that “growth, level of profit and volatility of profit are equally concerning,” while 28 percent said only “growth,” another 20 percent said only “level of profit” and only 11 percent said “volatility of profit and all growth.
The survey also unveiled that competition and cost management are the top challenges to achieving profit objectives, while economic and regulatory environments are the top challenges to meeting risk goals.
Towers Watson broke down the survey respondents into different participant profiles, which are as follows:
Individual life insurance is the primary LOB for 44 percent of the survey respondents, with 16 percent in life reinsurance and 11 percent in each of group life and individual annuities.
Stock companies comprise 61 percent of the survey respondents, with 33 percent mutual companies.
50 percent of the respondents report the U.S. as their scope of company operations, with 22 percent in North America.
67 percent of respondents had $1 billion or greater in total direct life insurance and annuity premiums and considerations.
56 percent of respondents had more than $10 billion in total assets in 2013.
44 percent of respondents are the CFO responsible for their overall company.
33 percent report using only independent life-oriented agents/brokers, with just under one-third using multiple distribution channels.
Take a look at the infographic provided by Towers Watson below for more details.