Life Insurance CFO Survey #26: Trends in the Retirement Income Marketplace

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Executive Summary

In our second Life Insurance CFO Survey in 2010, we focused on trends in the retirement income product marketplace. In addition to exploring general trends in the retirement income product market, we took an in-depth look at the retail market, the institutional defined contribution (DC) market and the institutional defined benefit (DB) market.

Key Findings

• Insurers are sharpening their focus on retirement income products. Though their attention is directed primarily toward the retail market now, respondents expect to look more toward the DC market over the next three years.
  
  
• The financial crisis has done nothing to dampen insurers’ interest in retirement income products. For a number of products, they expect significant growth — more than 10% per year.
  
  
  
  
   
• CFOs in the industry are increasingly optimistic about the outlook for new life and annuity premiums, GAAP net revenue and GAAP net income. This trend, which we highlighted in our last three survey reports, is a significant change from the low levels of optimism reported in the first quarter of 2009.