Life Insurance Executives Foresee Better Conditions in 2010

1/14/2010

A leading industry organization is predicting that life insurance companies will continue to emerge from the recession in 2010.

A survey conducted by LOMA's Resource Magazine finds that life insurance executives expect a modest economic recovery to take place in 2010, although the improvement would be largely relative to the conditions experienced last year.

Still, life insurance executives are expecting to see higher sales and profitability, as well as more premium growth. Factors like low interest rates and investment portfolios that suffered throughout the recession are said to be likely to hinder significant profit advancements. Some companies may also find that their bottom lines benefit from new technologies that make their workflow more efficient than ever.

"The environment will remain difficult - some companies will thrive while others will struggle," said Robert Kerzner, president of LOMA and LIMRA, which is also a prominent industry organization.

While the economic climate is likely to motivate many consumers to seek low-cost life insurance protection for their families, economc experts also commonly advise to people to check on the overall financial health of a company they are considering opening policies with.

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