It’s no secret that the US life insurance industry has been slow to recover from the economic crisis and that returns have been low. In fact, although the life insurance industry share index outperformed the S&P 500 in 2013, it has yet to return to pre-crisis levels as you can see from the figure below.
Looking to the future, the industry continues to face strong headwinds from:
- Low interest rates.
- Cost pressures.
- Product focus shifts.
- Changing customer behaviors.
- Increased competition.
- New regulatory initiatives.
These and other factors are forcing life insurers to re-think their approach to the market, a tactic supported by the modeling and scenario planning we conducted in the first half of 2013. That analysis shows that if insurers continue to use business-as-usual strategies, they cannot expect growth to accelerate appreciably.
But the good news is that opportunities for growth are out there for those willing to undertake the right strategic initiatives. In the following blog posts, I’ll look at some of those strategies and how they can set you on the path to profitable growth as we head toward 2020.
To learn more in the meantime, download: Getting to 2020: Strategies for Profitable Growth.