The improving economy is likely to continue to provide the life insurance industry with more chances for more steps forward over the course of 2014, as consumers continue to feel better about their individual financial standings and return to protecting themselves and their loved ones with this type of coverage. However, it's important to note that there may be a number of changing conditions in the market overall, of which policy issuers will have to be aware, and to which they'll have to adapt.
For one thing, companies will have to take into account the various regulatory changes for their industries that could be slated to go into effect in the coming 12 months, according to a report from Life Health Pro. Further, the federal government could undergo some significant tax reforms during this time, and that too might end up affecting the life insurance industry as a whole, because of the ways in which benefits for purchasing products offered by these companies might be changed.
And, with a potentially much greater number of interested consumers possibly flocking toward buying this kind of coverage in the coming year, that could also mean that policy issuers will have to prepare for more cutthroat competition for new buyers, or those who previously abandoned their plans but are once again in a financial position to afford them, the report said. For instance, more competitive pricing and increased benefits might become the norm throughout the marketplace, as consumers come to expect a little more bang for their buck in 2014.
Industry as a whole stands to improve
Despite these changes that could have a major effect on companies' bottom lines, the fact remains that next year seems poised to be a good one for them, the report said. Through the end of last year, about one-fifth of all American dollars invested in long term savings were held in either life insurance or annuities, but insurers stand to improve upon that number in the coming year and beyond. However, those that have the most success will likely be those that pursue a broader client base responsibly, by making sure that they are financially strong even as they do more to make their products more palatable to the average shopper.
One of the best ways to ensure success in this way is to offer a wide variety of product features that may appeal to different people, so that they can see how the combination of flexibility and low cost may benefit them going forward.