Outlines New Product Proposition and Business Model to Position
Life Insurers for Future Growth
BOSTON & LONDON--(BUSINESS WIRE)--
State Street Corporation (NYSE: STT), one of the world’s leading
providers of financial services to institutional investors, today
released its latest Vision paper examining the opportunities and
challenges facing the life insurance industry. Entitled “Life Insurance:
Focused on Growth,” the report assesses the current life insurance
landscape and highlights growing changes in client needs. It also
explores solutions to the urgent challenges the life insurance industry
is experiencing as demographics shift and markets evolve. This new
Vision paper follows State Street’s initial report on the insurance
industry published in 2007.
“Around the globe, retirement savings needs are rapidly changing and a
new lifetime savings industry based on a more holistic, lifelong
approach is taking shape to meet those needs,” said Wade McDonald, head
of client management and sales for State Street’s Global Services
business in the UK, Middle East and Africa. “To compete effectively in
this new environment, life insurers must look holistically at product
offerings and develop financial products that deliver performance,
manage risk, and provide value. Both banks and insurers will be actively
involved in developing new approaches to address the challenges that the
industry faces.”
The need to develop the appropriate solutions for this new environment
is sparking an evolution in life insurance product development.
The Vision paper states, “In the emerging environment, the first
priority for insurers is to make products that consumers want and need,
and deliver them in the right way. The products offered must evolve to
reflect a holistic approach to financial planning that answers a
lifetime of needs and they must be accessible in a way that acknowledges
the changes in how products are purchased today.”
Life insurers face significant operational implications as the industry
landscape changes. With new regulatory requirements, managing the
liability side more carefully and improving risk management are key
priorities. Insurers must also clearly distinguish core and non-core
business activities.
According to the Vision paper, “Against the backdrop of demands on
optimization of capital and a redefinition of the value chain, insurers
must first more closely examine what business activities are “core” and
“non-core,” and actively seek to outsource those elements that are not
core to the business.”
State Street’s Vision Series of in-depth reports is intended to advance
understanding of key themes and trends in the financial services
industry. A copy of this life insurance paper can be downloaded at www.statestreet.com/vision
or to order a hard copy, email vision@statestreet.com.
Previous papers in State Street's Vision series address a range of
topics, including pensions, UCITS IV, sovereign wealth funds and
exchange-traded funds.
About State Street
State Street Corporation (NYSE: STT) is one of the world's leading
providers of financial services to institutional investors, including
investment servicing, investment management and investment research and
trading. With $20.2 trillion in assets under custody and administration,
and $1.9 trillion in assets under management at September 30, 2010,
State Street operates in 25 countries and more than 100 geographic
markets worldwide. For more information, visit State Street’s website at www.statestreet.com.
Source: State Street Corporation
Contact:
State Street Corporation
Lucy Davidson, + 0 203 395 4373
or
Alicia
Curran Sweeney, +1-617-664-3001