Annuity providers turn to technology in changing market

Dec 21, 2010

Technology is helping annuity providers.

A recent report from consulting firm Novarica noted life insurance companies and other annuity providers can rely on technology to adapt to a changing market.

One area that annuity providers have relied on recently is straight-through processing. This allows companies to receive business electronically, which could increase efficiency.

Furthermore, the firm said advances can help companies define products in a more timely way, thereby getting them to market more quickly. This also allows for flexibility in an economy that may change rapidly.

Don Desiderato, a principal at Novarica, said annuity providers are delineating themselves more by the technological advances, rather than wide-ranging services.

"The annuity marketplace is changing rapidly, between its reinvention following the market crash of 2008 and consumers' growing interest in private alternatives to social safety networks like Social Security," Desiderato said.

Consumers may be able to take advantages of technological advances in order to better educate themselves about life insurance products. Many companies now offer connections through social media networks like Facebook and Twitter, while state oversight departments have also taken to the internet to inform the public.

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