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Some predictions
Predictions are always a dangerous game . But if one takes the broad dynamics of platform-based economies as largely constant through every sector , we can also look into the near future for the Life and Annuity sector .
3 predictions over the next decade
Life , Annuity and LTC business origination ( new business ) will proportionately and dramatically shift towards multi-carrier distribution platforms
Life and Annuity distribution will consolidate onto 3-5 leading “ mega-platforms ”, owning over 50 % share (* similar to financial planning software landscape )
Distribution focus will shift from traditional , back-office “ agency management platforms ” to field technology “ sales enablement platforms ”
Fintech platforms are remaking the financial services industry – redefining expectations , across the value chain , from manufacturing to distribution to consumers .
Unstoppable drivers
There are several unstoppable forces and accelerants now at play . Each of these trends , in and of itself , is enough to shift the structure of the sector . However , when one considers all five in the aggregate , the emerging future is a foregone conclusion .
Staggering investment in Fintech : Global Fintech investment reached $ 44 billion in 2020 2 , definitively underscoring the fact that we are in the age of Fintech and Insurtech platforms .
The march to Best Interest ( BI ): There is only one way to accomplish this efficiently and cost effectively — a technology platform .
New distribution business models : The traditional distribution business model within the Life and Annuity sector is changing , with a new focus on field-oriented digital sales enablement .
The weight of market expectations : Every single financial services experience today is digital , visually intuitive , interactive and easy to understand . Every single one – except the life and annuity sales experience .
These drivers are irreversible .
Business Strategies continued on page 34
2 The state of FinTech : a recap of 2020 and a glimpse into 2021 , FinExtra , 2 / 8 / 21 ( https :// www . finextra . com / blogposting / 19849 / the-state-of-fintech-a-recap-of-2020-and-a-glimpse-into-2021 )