Things are changing quickly in financial services. Understanding what the future may bring is the key to preparing for it. Each year, LIMRA’s annual predictions report provides our insight on the key issues and trends that could impact the industry.
The five most powerful trends the industry will face within the next several years are:
In the new regulatory environment, products will be simplified to make them easier for consumers to understand. Advisors will be challenged to expand their capacity to interact with clients and will rely on technology to do this. Planning and advice will become less “art” and more “science.”
The Changing Consumer
The omnichannel approach will become the norm, and the experience will become increasingly personalized based on consumer feedback and preferences. Companies will more fully use customer journey and experience metrics to drive product and service evolution.
Data analytics and InsurTech firms will play significant roles, while cybersecurity threats will expose companies to further risk.
Companies will innovate around product and distribution concepts that exist around the world — but that may not yet exist in their own markets.
Roles as they exist now will change, and some will be unrecognizable in a few years. Recruiting, training, and retention programs will evolve to include elements of personalization.
Scott Kallenbach directs LIMRA’s Strategic Research program, which identifies and examines strategic issues that can impact the financial services industry. The research is intended to stimulate thought and facilitate management decision making.
With over 25 years of market and strategic research experience, Scott is a frequent speaker at industry forums, and is a regular contributor to the trade press, including LIMRA’s flagship publication, LIMRA’s MarketFacts Quarterly.