The life insurance industry is a crowded field. The market is chock full of products, from short term insurance to long term solutions. To remain relevant, insurers must stay abreast of the latest and greatest, and most importantly, stay true to the product and customer needs.
In a survey of European insurers, PwC noted that the life insurance industry has a number of apsects. It is not surprising to learn that the industry has had to do its due diligence on what's on the table, and what's on the chopping block. Several insurers have been investing in new technology and infrastructure, while others have sought to reposition their product portfolios.
The deferred annuity industry is no slouch. However, this business is a far cry from the heyday of life insurance. While the market has expanded, its offerings are not for the faint of heart. With the aforementioned challenges in mind, insurers need to find the best ways to free up capital for good. Using the right stymy, they are able to reposition their products to better serve customers in the future.
Having a large amount of capital available for investment is important, as is being able to reposition a small portfolio to meet the needs of a larger one. For example, Allianz has partnered with an expert in policy administration to improve the scalability of its product lines. They are also investing in commercial property, and are on track to be a top 10 global insurer by the end of the year.
To be sure, the entrails of the insurance industry have not been the easiest to swoop in and out of, but with an eye towards innovation and the future, insurers are well positioned to do just that.