FORECAST 2024: Impactful Forces

By: Tammy M. Appel, Contributing Editor, LIMRA and LOMA

January 2024

We asked Forecast survey participants which trends they believe will have the greatest impact on their organization over the next two years. Information technology, regulatory pressure and customer expectations continue to be at the forefront, according to these executives. The war for talent, changes in workplace culture and the economy are also in the mix of top concerns.

How are these factors impacting the insurance and financial services industry? “The pace of change in technology, and how we use it, will continue to accelerate,” says Mark Holweger, President & Chief Executive Officer, Legal & General America. “The future is going to be quicker than five — 10 years. It will be like the Industrial Revolution on steroids and will be measured in months, not years. We must leverage technology and the digitization of our processes for the good of those we wish to serve — individuals, families and businesses that need the protection life insurance can provide.”

Wade Harrison, EVP & Chief Retail Officer, Protective Life, concurs: “Over the next two years, technology and digital capabilities will continue to be a strong influence on our business and the industry as a whole and allow companies to have greater competitive positioning,” he says. “We continue to see how insurers are investing in more technology and adopting artificial intelligence (AI) capabilities to allow for more automation in underwriting and claims processing, support customer needs more quickly and cultivate learnings from data.”

Executives noted the far-reaching effects that technology continues to have on the insurance industry. “Our ability to create new digital capabilities that improve the experience of our employees, field and clients, while effectively fostering their adoption, will prove key to both our short- and long-term success,” says Kamilah Williams-Kemp, EVP & Chief Insurance Officer, Northwestern Mutual. “We believe that an exceptional client experience requires us to provide an exceptional experience to the advisors and employees who support them. Automation and generative AI have the potential to transform those experiences in ways never thought possible — and all for the better — ultimately enhancing the long-term relationships we build with our clients.”

Mike Simonds, Chief Operating Officer, Unum Group, agrees: “Technology continues to grow in importance. AI, digital and automation are all helping to open new channels, deliver better customer experiences and increase productivity.”

“We’ll need to continue investments in technology to best match consumer demands and expectations in our industry,” says Joe Monk, SVP, Financial Services, State Farm. “Digital modernization will be absolutely necessary. At the same time, new capabilities and technologies, such as AI, will become more normalized and integrated into business practices.”

“Enhanced technology and data utilization will continue to have a significant impact, along with the evolving needs of consumers across different generations,” says Caroline Feeney, EVP & Chief Executive Officer, U.S. Businesses, Prudential Financial Group. “More comprehensive and holistic use of data will give us a better picture of our customers and give us an opportunity to offer financial solutions tailored to match their needs. It will help our customer service professionals be better positioned to offer our customers the opportunity to speak with a financial advisor, so we’re caring for our customers’ immediate needs and their long-term needs.”

Legislative initiatives are always top of mind in the C-suite, given that insurance and financial services companies are among the most highly regulated companies in the world. Many of the executives we spoke with mentioned ...

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