Insurers know they must stay relevant to younger, tech-savvy demographics of customer and producer communities: Novarica
Boston, MA (June 8, 2021) – Annuities remain a hyper-competitive sector in which technology plays a growing role in attracting, retaining, and profitably serving clients. In its latest report, Business and Technology Trends: Annuities, research and advisory firm Novarica provides an overview of annuity insurer business and technology issues, data about the marketplace, and more than a dozen examples of recent technology investments by annuity insurers.
“The ability to roll out new products, pricing, and product changes rapidly in response to market conditions is vital for growing revenue and market share,” said Deb Zawisza, Vice President of Research and Consulting, and lead author of Novarica’s new report. “Preparing to address the needs and aspirations of people that came of age in the 21st century will be critical for annuity writers; otherwise, they could lose those populations to more consumer-friendly financial services alternatives.”
Among the key findings of the reports are:
- 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 a larger compliance workload makes serving that base challenging.
- Speed to market and product design are vital for sales growth. Business intelligence and core systems investments remain critical in improving time to market and product flexibility.
- 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. Federal and state regulations are reasserting best interest requirements while accounting changes are resulting in increased exposure to market volatility, even as they make comparison of companies easier.
Click here for the table of contents or to access the report.
Report Summary
The ability of annuity insurers to roll out new products, pricing, and product changes rapidly in response to market conditions is vital for growing revenue and market share. The annuity market faces ongoing competition from alternative wealth products. Insurers are looking to deepen existing distribution relationships, expand new channels, and improve transparency.
This report provides an overview of annuity insurer business and technology issues, data about the marketplace, and more than a dozen examples of recent technology investments by annuity insurers.
Topics:
- Recent market and financial trends
- Active insurer landscape
- Technology issues, priorities, and examples by functional area
- Top technology priorities for 2021 and beyond
Click here for the table of contents or to access the report.
About Novarica
Novarica helps more than 150 insurers make better decisions about technology projects and strategy. Its research covers trends, best practices, and vendors, leveraging relationships with more than 300 insurer CIO members of its Research Council. Its advisory services provide enterprise phone and email consultations on any topic for a fixed annual fee. Consulting services range from assessments and strategic roadmaps to vendor evaluations. For more information, visit www.novarica.com.
Source: Novarica
Tags: Life & Annuity, Novarica, trends
