Being technologically advanced is one of the most important ways for carriers of annuities to make it out of this financial crisis. In the article “Technology Key for Annuities Carriers,” Bill Kenealy of Insurance Networking News says that using technology to capitalize on the changes in the annuity marketplace will help annuities sellers stay competitive. There are many consumers interested in the best annuities because they want alternatives to the possibly shaky Social Security payments they’ll receive in the future. Fewer Americans receive traditional pensions as well, so they’ll benefit from annuity income for life. Taking advantage of the interest in annuities by offering better products with advanced technology is the best step for annuity carriers.
The article says that spending money to improve and advance actuarial systems is crucial. Companies will be able to hedge more often and get advantages with their pricing, management of capital, reserving, and statutory reporting. Annuity carriers will be able to have better relationships with distributors if they invest technology money into STP, or straight-through processing. This will also help them lower the number of touch points in the back office. Decreasing the amount of time it takes to get annuity products to the marketplace is also an important technology investment. Companies need to get new products out quickly as consumers demand them. Annuity companies that offer the best annuities will also have the greatest advances in technology most likely.