In anticipation of the great demand for retirement income products by Baby Boomers as they begin to retire, financial services companies are working hard to develop products and services to capture this “money in motion,” according to
“Retirees are more concerned than ever about their ability to generate income that will last throughout their retirement, giving insurers an opportunity to develop new products designed to mitigate uncertainty about retirement income,” said Rebecca Amoroso, head of the insurance practice at Deloitte. “Insurers face a critical decision about whether to unbundle insurance coverage from asset management offerings and how best to achieve this because their ability to assume these risks is a core strategic advantage over players in the other sectors.”
If mutual fund companies want to capture these rollovers and compete effectively with banks and insurers, they will have to “reposition and broaden their brands,” said Cary Stier, head of asset management services at Deloitte.
