June 2021 – 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
Key Points and Findings
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.
About the Author
Deb Zawisza
Deb Zawisza is a Senior Principal at Datos Insights. She has expertise in insurance technology leadership and transformation with over 30 years of experience. Prior to joining the firm, Deb was SVP/CIO for Claims/Loss Control at Travelers Insurance, leading core system modernization, expansion of data and analytic capabilities, Agile transformation, and digital initiatives related to property/casualty claims across all lines...
Other Authors
Datos Insights
We are the advisor of choice to the banking, insurance, securities, and retail technology industries–both the financial institutions and the technology providers who serve them. The Datos Insights mission is to help our clients make better technology decisions so they can protect and grow their customers’ assets.
Steven Kaye
Steven Kaye is Head of Knowledge Management at Datos Insights, and lead editor of the firm’s Business and Technology Trends in Insurance series. He has managed a wide range of research projects since joining the firm in 2008. Previously, Steven worked for Accenture as an insurance researcher focused on the U.S. life and property/casualty markets. He also served in both knowledge management...