For insurance agents and insurers to make an impact on an ever-changing consumer marketplace, industry professionals will need to adjust their business strategies on an as-needed basis.
According to a new report from risk management firm Ernst and Young, new companies are making an appearance in the life insurance industry, forcing many carriers to consolidate. This is also prompting insurers to look over their portfolios, seeing which products are more profitable. The goal for these companies will be to make all the product lines offered as balanced as possible, where "no single line dominates the business." This will help life insurers obtain an upper hand on the competition.
"Successful players are introducing or re-positioning product offerings that are attractive to consumers and profitable to insurers," said Doug French, principal of financial services and insurance and actuarial advisory services at Ernst and Young. "Insurers are reexamining and strengthening the customer value proposition by leveraging technology to improve business models and gain a competitive advantage."
Other issues agents may want to take under advisement are how much life insurance is taking up in homeowners' expenditures and whether these costs can be simplified through more basic products that don't sacrifice quality.
With the Patient Protection and Affordable Care Act looming, industry professionals may also want to look at some of the rules that govern the health reform law and whether their implementation will wind up affecting their life insurance lead generation strategies.