ATLANTA, GA, January 11, 2006 – The outlook for the life insurance industry for 2006 is for flat to modest growth, according to the annual forecast by the LOMA Board of Directors. The LOMA Board of Directors is composed of chairmen, presidents, CEOs and other top executives of leading insurance and financial services companies in the U.S., Canada and internationally.
LOMA’s Resource magazine surveyed the board members, seeking their predictions for 2006. The directors responded that the industry will see premiums and sales grow between 1 to 5 percent, with increased pressure on profits due to higher costs.
In addition, the directors said:
They expect the recent trend of consolidation to continue, due to increasing competitive pressures.
Regulatory and legislative tax issues are a concern, and include income tax reform, estate tax changes, and the optional federal charter.
Technology will continue to evolve, offering the ability to better serve customers. Key technologies that can help insurers include Web-based customer service, electronic forms and signatures, imaging, wireless and enhanced data mining.
One of the greatest human resources challenges will be finding and hiring talented people, especially in light of the large number of baby boomers expected to retire in the future.
The complete forecast is in the January issue of LOMA’s Resource magazine. The forecast can also be read on the Resource section of the LOMA web site at http://www.loma.org/IndexPage-Resource.asp