Speaking at the 2018 LIMRA Conference, Robert A. Kerzner, president and CEO of LIMRA, LOMA and LL Global, observed that “traditional distribution is consolidating, aging and declining.” To grow life insurance and annuity sales, new distribution channels must be added, he stated.
“We need to establish new and broader distribution sources. We must leverage technology to simplify the process so more banks, broker-dealers and registered investment advisors want to recommend life insurance and annuities to their clients,” said Kerzner, who opened the conference taking place in New York City from Oct. 28-30. His comments were distributed via a press release issued Oct. 29.
Kerzner underlined that consumers’ expectations have evolved. “Whether its retail, affinity or workplace, consumers expect an easy and engaging experience,” said Kerzner. He added that technology solutions have enabled insurance companies to make progress, but there is still a long way to go.
“While our research indicates every company has initiatives underway to transform into a digital organization, current legacy systems and budget priorities constrain them,” said Kerzner. “Those who figure it out will be clear winners in the next 5 to 10 years.”
He suggested industry transformation could come from outside technology disruptors, like Amazon, Google or Facebook.
Financial service super-marketplace
“These tech players are already digitally native…They look at a business problem from a digital perspective. Rather than competitors, could they be the new distribution we are seeking? Could they or someone else become a financial service super-marketplace where people will go to get any type of financial service product?”
Kerzner added that he expects the pace of change in the insurance industry to accelerate. Companies should not fear this change, but embrace it since it “allows for new opportunities and growth.”