With the release of Novarica’s new Business & Technology Trends: Individual Annuity report, I wanted to highlight a few trends which our research uncovered in this blog.
First, 2015 is a pivotal year for annuities. It is the year when Millennials will equal Baby Boomers in the workplace. Once Baby Boomers start retiring over the next 15 years, they will go from 50% of the workforce to under 10%. Second, the impact of the Great Recession has run its course, with interest rates poised to rise in the 4th quarter of 2015 and beyond.
These events will drive huge demand for innovative annuity product features, such as alternative asset classes via funds and sub account investment options to guarantee income at retirement for baby boomers. In order to deliver, core systems must be replaced to support new product features and agent portals must be updated to support straight-through- processing to provide the operational efficiency required.
In addition to core system replacement and straight-through-processing some of the technology priorities noted in our new report include:
- Use of social media in marketing tools
- More sophisticated actuarial systems
- Improved analytics and sales reporting
- Proper tools for enhanced risk management, with a focus on internal controls
In order for insurers to survive and thrive in the individual annuity marketplace, technology will continue to play a vital role in terms of speed to market, customer acquisition and retention and product flexibility and pricing. For more information, download a free preview of our Business & Technology Trends: Individual Annuity report at: https://novarica.com/business-and-technology-trends-individual-annuity/ or email me to set up a complimentary 30 minute consultation.