LAS VEGAS, Nev., Apr. 14, 2011 — Opening the 2011 Retirement Industry Conference in Las Vegas, Robert A. Kerzner, president and CEO of LIMRA, LOMA and LL Global, told the 400 attendees that the industry is well positioned to capture a bigger portion of the more than $16 trillion in U.S. retirement assets in the coming years.
“Over the past 25 to 30 years, the life insurance industry has increased our assets due in large part to our increased focus on the retirement market,” said Kerzner. “But our results pale in comparison to the success the mutual fund companies have had in this market. We have a major opportunity to communicate the unique benefits our industry offers to Generations X and Y, who won’t have defined benefit plans to rely on in retirement, and win more of the market share.”
Kerzner shared with the audience LIMRA research that showed that people are feeling less secure financially and less prepared for retirement. He noted that more than 99 percent of people said that having enough money to retire was a major goal, yet only seven percent felt they had achieved it, with six in 10 people having less than $100,000 in household investable assets.
Kerzner suggested that the industry needs to do a better job helping consumers systematically save for retirement, like many companies did in the past through debit programs. “The 401(k) plan has become the modern day debit system, but what’s next? It’s clear the 401(k) alone is not the answer,” he said.
He closed his remarks by challenging the industry to find better ways to connect with consumers of all ages and ‘cut through the noise’ to educate them on the importance of developing a lifetime income stream and how our industry is most capable of providing it.
The annual Retirement Industry Conference event, hosted by LIMRA, LOMA and the Society of Actuaries (SOA), attracts more than 400 retirement industry professionals from companies across the globe to gain insights on the latest industry developments and equip themselves with solutions to address the complex challenges they face every day.
LIMRA is a worldwide research, consulting and professional development organization that helps more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.