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State Street Releases New Vision Report on the Life Insurance Industry

^{Published on 2010-11-29 07:10:55 - Market Wire}
 

BOSTON & LONDON--([ BUSINESS WIRE ])--State Street Corporation (NYSE: STT), one of the worlda™s leading providers of financial services to institutional investors, today released its latest Vision paper examining the opportunities and challenges facing the life insurance industry. Entitled aLife Insurance: Focused on Growth,a the report assesses the current life insurance landscape and highlights growing changes in client needs. It also explores solutions to the urgent challenges the life insurance industry is experiencing as demographics shift and markets evolve. This new Vision paper follows State Streeta™s initial report on the insurance industry published in 2007.

"Around the globe, retirement savings needs are rapidly changing and a new lifetime savings industry based on a more holistic, lifelong approach is taking shape to meet those needs"

aAround the globe, retirement savings needs are rapidly changing and a new lifetime savings industry based on a more holistic, lifelong approach is taking shape to meet those needs,a said Wade McDonald, head of client management and sales for State Streeta™s Global Services business in the UK, Middle East and Africa. aTo compete effectively in this new environment, life insurers must look holistically at product offerings and develop financial products that deliver performance, manage risk, and provide value. Both banks and insurers will be actively involved in developing new approaches to address the challenges that the industry faces.a

The need to develop the appropriate solutions for this new environment is sparking an evolution in life insurance product development.

The Vision paper states, aIn the emerging environment, the first priority for insurers is to make products that consumers want and need, and deliver them in the right way. The products offered must evolve to reflect a holistic approach to financial planning that answers a lifetime of needs and they must be accessible in a way that acknowledges the changes in how products are purchased today.a

Life insurers face significant operational implications as the industry landscape changes. With new regulatory requirements, managing the liability side more carefully and improving risk management are key priorities. Insurers must also clearly distinguish core and non-core business activities.

According to the Vision paper, aAgainst the backdrop of demands on optimization of capital and a redefinition of the value chain, insurers must first more closely examine what business activities are acorea and anon-core,a and actively seek to outsource those elements that are not core to the business.a

State Streeta™s Vision Series of in-depth reports is intended to advance understanding of key themes and trends in the financial services industry. A copy of this life insurance paper can be downloaded at [ www.statestreet.com/vision ] or to order a hard copy, email [ vision@statestreet.com ]. Previous papers in State Street's Vision series address a range of topics, including pensions, UCITS IV, sovereign wealth funds and exchange-traded funds.

About State Street

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $20.2 trillion in assets under custody and administration, and $1.9 trillion in assets under management at September 30, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Streeta™s website at [ www.statestreet.com ].