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December 7, 2010updated 13 Apr 2017 8:51am

Evolves or face extinction, says Limra

Life insurers in the US that want to survive and thrive must innovate or risk becoming also-rans, Robert Kerzner, president and CEO of financial industry organisation Limra told 450 insurance executives at the 2010 Limra Annual Conference held in Washington DC in late-October

By LII editorial

Life insurers in the US that want to survive and thrive must innovate or risk becoming also-rans, Robert Kerzner, president and CEO of financial industry organisation Limra told 450 insurance executives at the 2010 Limra Annual Conference held in Washington DC in late-October.

“Many of the fundamentals of our business are out of balance,” said Kerzner. “In the animal kingdom, failure to adapt means extinction. In the same way, companies need to significantly transform their thinking and adapt their business models in order to remain competitive.”

Kerzner noted the life insurance business environment has become far more challenging in the wake of the financial crisis.

He outlined factors such as the low interest rate climate; the increasingly onerous legislative and regulatory environment; unfavourable interest spreads and higher operating costs.

These, he said, have led to greater risks for companies with potentially diminished rewards.

Kerzner predicted the changes taking place in areas such as regulatory capital reserve requirements would contribute to intensified merger and acquisition activity in the life industry.

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