Business and Technology Trends: Annuities

Report Summary

Business and Technology Trends: Annuities

Deb Zawisza
Robert McIsaac
Head of Life, Annuities, and Benefits
Steven Kaye

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.

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