New laws and regulations could change the life insurance landscape in 2011. Insurance advisory company Ernst and Young says that means insurers will have to make changes if they want to have a successful year.
Ernst and Young says new products will need to be devised in order to spur growth and maintain business. This could be good news for consumers who have not been tempted by current offerings.
Ernst and Young insurance industry services global director Pete Porrino says next year could be a time where insurers sink or swim depending on tactics used.
"While insurers must be cautious of the looming regulatory changes and the resulting strategic and competitive challenges, there are opportunities in deploying rebuilt capital to reposition and grow their businesses and improve future earnings," says Porrino.
Despite new regulations, the basic offerings of life insurance will remain the same. Consumers will still be able to choose between standard term and life options, for example.
Having life insurance is important for people regardless of the number of dependents they have. In addition to a death benefit, some policies also offer income to be used while a policyholder is still alive.