Regulation and reform will drive change and reshape the life and health insurance industries in 2011.
Boston, January 18, 2010 – A new report from Aite Group sheds light on the top trends that will impact the life and health insurance industries in 2011. It provides five trends that will shape each sector.
Life insurance premiums reached dramatic lows in 2009; despite improvement in the past year, the industry has a long road ahead of it. The big question remains whether the abatement of the Great Recession will let life insurers return to higher sales rates, or whether baby boomers and Generations X and Y will shift away from higher-margin life insurance products in an environment in which, for the short term at least, estate-planning needs drive fewer sales.
The U.S. healthcare industry saw its fair share of turmoil in 2010, with the passage of healthcare reform on March 23, 2010 and wide-ranging issues around its effectiveness. Despite the chatter of House Republicans, Aite Group firmly believes that healthcare reform will not be repealed. While some parts of healthcare reform are expected to change drastically, others—the use of healthcare insurance exchanges to create a competitive marketplace, for example—are here to stay.
“On the whole, life insurance and health insurance will continue to react to secular changes to their operating environments, driven to differing extents by regulatory changes,” says Clark Troy, research director with Aite Group and co-author of this report. “Carriers, distributors, and vendors in each market will continue to work hard to break through process silos and let information flow more smoothly between industry participants. Both verticals must overcome strong legacy platform overhangs; through concerted, coordinated, and informed effort, participants will help ring in positive changes for 2011.”
This 23-page Impact Note contains five figures and one table. Clients of Aite Group's Life Insurance or Health Insurance services can download the report.