To understand life insurance, it is important to appreciate the economic and sociological forces impacting the industry, causing changes in its structure and products. The objective is to select appropriate products to provide long-term satisfaction. Risk and return are very much a part of the picture, and one just understand the risks to realize the potential returns.
In John Watt’s prophetic 1987 book addressed to the insurance industry, The Financial Services Shockwave, he discussed “Six diverse, largely unrelated forces (shockwaves) at word to alter your lifestyle forever.”
- The economy
- Deregulation
- Legislation
- Demographics
- Technology
- Consumer knowledge, attitudes, and habits
We will examine some of these briefly.
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