Conning sees potential for growth in individual life despite strong challenges
June 4, 2014 by IFAwebnews Staff
The consumer market for life and annuities shows growth potential, but is also challenged by increasing diversity in demographic, lifestyle and consumer preferences, according to a new study by Conning.
“Life insurers are working through the issues that stem from increasing diversity in the life-annuity consumer market,” said Mary Pat Campbell, analyst at Conning. “The U.S. population as a whole has become more ethnically diverse over the past few decades, especially as immigration restrictions were loosened and as fertility patterns changed for the overall population.”
Campbell said that Conning looked closely at the very different needs and opportunities for life insurers represented by three of the largest cultural markets in the U.S., defined by ethnicity/race: Hispanics, African-Americans, and Asian-Americans.
The Conning study, “2014 Life-Annuity Consumer Markets Annual” reviews the extent and impact of changing age profiles, increasing diversity, socioeconomic shifts, lifestyle changes, cultural markets, and consumer attitudes.
“Generational change and shifting needs are also driving life insurer strategies,” said Steve Webersen, director of research at Conning. “The different needs among the various age groupings are causing a shift in the industry’s product offerings and distribution planning. Our estimate of the consumers’ life insurance protection gap of $15.8 trillion, although improved from a year ago, still remains above pre-crisis levels. Those insurers that can properly plan for and address the specific needs of more finely targeted market segments will find success in this fragmenting market.”
