To achieve meaningful and expected long-term returns on equity, life insurers in North America would do well to target four key segments that—if given the right focus—can provide substantial growth potential. One of them is the aging population.
More than 75 million Baby Boomers are nearing retirement. It’s projected that they will transfer more than $30 trillion in wealth to their heirs. Yet, according to Retirement Income Industry Association research, 53 percent of Baby Boomers lack the information to prepare for retirement; 86 percent have little or no awareness of retirement products offered by insurance companies.
Insurers can capture growth opportunities by adapting their business models to:
- Evolve their product portfolio, developing holistic products and services that support the wealth, health and protection needs of people living in retirement 20, 30 or more years.
- Provide needs-based education and advice on estate planning and wealth accumulation, backed by self-service tools and distribution channels.
- Conduct predictive analytics, using data to detect life events, anticipate buyer behavior and enable insights-based marketing and sales strategies.
For more insights on pursuing the aging population, read Retirement Services Survey Part II: Disruption and Innovation Pose Fundamental Questions for Life Insurers.
My next blog will continue this series, discussing the middle market.