Life Insurance Industry Changes To Watch For In 2013

Change AheadThe New Year is upon us and as everyone is set to begin making changes in their personal and professional lives for 2013, the life insurance industry is also getting ready for some possible changes .

Life Health Pro has released the five things to expect for life insurance in 2013:

 

  1. The tax-favored status of life insurance products:  While industry watchers don’t believe that life insurance products will lose their tax-favored status as a result of the fiscal cliff and other reforms, everything is on that table and the COLI and BOLI product tax status can change.
  2. Evolving to respond to the changing consumer: The way consumers shop for life insurance may begin to evolve in 2013. Social media, digital marketing, and mobile distribution strategies could become the new way to purchase life insurance.
  3. Remaining Relevant:  Rebranding may become a priority in the New Year as many young people are not aware that life insurance can be used as an investment vehicle. According to an Ernst & Young report, the average household expenditure on life insurance has declined by 50 percent over the last decade.
  4. Entering developing markets:  International markets are being eyed as the next big opportunity, but with that there are a whole new set of cultural and political barriers you need to overcome.
  5. Awareness of international and domestic regulatory issues: Some of the largest carriers, such as AIG, Prudential and MetLife may soon be designated as systemically significant (SIFI) and they will have to get used to federal regulation and higher capital standards. Of course, SIFI designation has been on the horizon for these firms for the better part of a year, so they should be prepared for it already. The question is what happens if SIFI designation drops on a company not expecting it, LifeHealthPro.com reported.


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