Annuity Writers Focus Tech Strategy on Customer Experience and Transparency

Top priorities for 2019-20 include core system modernization, enabling straight-through processing, and improving distributor portals: Novarica

Boston, MA (June 11, 2019) – Individual annuity carriers are looking to deepen existing distribution relationships, expand new channels, and improve transparency to differentiate themselves in a competitive marketplace. In a new report, Business and Technology Trends: Individual Annuity, research and advisory firm Novarica provides an overview of individual annuity carriers’ business and technology issues, data about the marketplace, and several examples of recent technology investments by individual annuity carriers.

“If carriers are to expand the market for annuities beyond consumers in their fifties or older, they must understand the differences in buying, communications, and research behaviors between Millennials and Generation Z and prior generations,” said Deb Culliton, Vice President of Research and Consulting and co-author of Novarica’s new report. “Transparency is a key value. Allowing younger prospects and clients to conduct transactions by themselves, on their time, will yield dividends in terms of building trust.”

Individual annuity technology priorities, 2019-20 (Novarica)

Individual annuity technology priorities, 2019-20 (Novarica)

Key findings of the report include:

  • Self-service is key for cost containment and customer satisfaction. With a push to lower fees, producers need to grow their client base to make up for lost income-but an increased compliance workload makes serving that base challenging.
  • Speed to market and product design are vital for sales growth. Speed to market and product design are vital for sales growth.
  • IT is partnering with operations, actuarial, and underwriting to drive efficiency and value. These partnerships are also raising the issue of talent management, whether rotating internal staff or sourcing talent externally.
  • Regulatory changes will continue to impact the annuities market in the near term. While the DOL guidelines are all but gone, additional NAIC, SEC, and state regulations will replace them.

A preview of the brief is available online.

Summary

The individual annuity market faces continuing competition from alternative wealth products. Carriers are looking to deepen existing distribution relationships, expand new channels, and improve transparency.

This report provides an overview of individual annuity carriers’ business and technology issues, data about the marketplace, and several examples of recent technology investments by individual annuity carriers.

Topics:

  • Recent market and financial trends;
  • Active insurer landscape;
  • Technology issues, priorities, and examples by functional area;
  • Top technology priorities for 2019 and beyond.

Click here for the table of contents or to access the report.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.

Source: Novarica

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