Cerulli urges reassessment for life insurance industry. (Life/Health).The life insurance industry is "ill-equipped" to handle an anticipated swing in demand for asset preservation and retirement income, says Boston-based Cerulli Associates in a recent report. In the report, Funding Retirement Income: Impact on Managers and Distributors, Cerulli argues that the industry has a "weak stable of products and services for funding retirement income and managing the inherent risks during this period." A greater number of households in coming years will enter the retirement period than financial markets have ever experienced before, the research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a said. These households, comprising the "Silent Generation" now retiring followed by baby boomers See generation X. , will have to increase liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of their assets to support retirement-income needs from $134 billion in 2001 to about $670 billion by 2012. Meanwhile, the number of working households will not be able to accumulate assets fast enough to backfill back·fill n. Material used to refill an excavated area. tr.v. back·filled, back·fill·ing, back·fills To refill (an excavated area) with such material. the projections for asset attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: , Cerulli said. Cerulli argued that industry participants "must begin to assess the strategic implications of this changing marketplace today." |
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