NEW YORK, Oct. 21, 2013 — Robert A. Kerzner, CLU, ChFC, president and CEO of LIMRA, LOMA and LL Global, opened the 97th LIMRA Annual Conference in New York, challenging executives to find ways to overcome the disruptions facing the financial service industry, and innovate within their companies to remain relevant in today’s changing world.
“While protracted low interest rates, intensified regulation and growing demand of investors and stakeholders continue to challenge financial service companies,” said Kerzner. “There is also growing competition for consumers’ attention and where to spend their money, which is why it is vital that we offer products and services that resonate with consumers, helping them focus on protecting against risk and saving for retirement.”
His remarks emphasized the importance of using all means available — including technology, big data and predictive analytics — to better understand not only who their customers are but what they are likely to do in the future. Kerzner provided examples from other industries (Disney, HP, Target), as well as ones within the financial services industry to demonstrate how companies are using big data and predictive analytics to enhance the customer experience. He pointed out the importance of identifying ways to better engage and motivate consumers to help them make prudent financial choices. He also described how companies have improved productivity and efficiencies using big data and technology, lowered costs with predictive analytics to combat fraud and improve pricing models.
Kerzner noted that consumers today are far more worried about living too long than dying too soon. He highlighted importance of companies developing strategies that position their products to address the growing retirement needs of Americans, helping them understand the risks in retirement, and finding the solutions to create financial security for their golden years. “The demographics and need are in our favor — there is a huge opportunity for the financial services industry if we demonstrate the value of our products in a way that addresses the chief concerns of today’s consumers,” he said.
“Our research shows that one of consumers’ principle reasons for not buying life insurance is that they have other financial priorities — the top being saving for retirement,” Kerzner added. “We have to educate consumers that permanent life insurance provides a means of systematic savings and without the protection of life and disability insurance, the income they are relying on to create their retirement nest egg may disappear, undermining their retirement goals.”
The conference theme, "Leading Through Disruption to Relevance,” focuses on how industry leaders can address today’s unmatched challenges to steer their organizations toward a successful path.
More than 500 senior leaders from life insurance and financial services companies worldwide attended the industries' most preeminent meeting.
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.