Study: future of industry driven by consumer perception, competition.The scenarios for the future of life insurance range from a world in which it is in high demand because of wars, terrorism and economic stagnation Economic stagnation, often called simply stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth). By some definitions, "slow" means that it is significantly slower than a potential growth as estimated by experts in to one in which there is little demand because of peace, prosperity and relaxed regulation leading to new financial-services competitors. Limra International released a study in which it developed four possible futures for the life insurance industry come 2016, and hired Decision Strategies International to help with the project, which began in early 2006. They identified two major drivers: consumer perception and the competitive landscape, said Robert A. Kerzner, Limra's president and chief executive officer. Kerzner said Limra wants to give member companies a clear picture of what could happen and what types of events would have the biggest impact. The project provides a way for executives to "stress test" company strategies and uncover potential shortcomings A shortcoming is a character flaw. Shortcomings may also be:
Part of the study explains the phenomenon of the "weak signal," which perceptive per·cep·tive adj. 1. Of or relating to perception. 2. Having the ability to perceive. 3. Keenly discerning. per people recognize as an indicator of impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. change. A good example was Napster, an online service for downloading music for free; there was debate over whether Napster intruded in·trude v. in·trud·ed, in·trud·ing, in·trudes v.tr. 1. To put or force in inappropriately, especially without invitation, fitness, or permission: on copyright law. Kerzner said many believe Apple Computer recognized a weak signal that led it to invent the iPod. The most positive scenario in the Limra/DSI study for the industry is likely to occur if there are political and physical threats to the population, an economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and an inability by government to provide social insurance. |
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