The life insurance sector has to pick up the pace on innovation, says EY’s 2016 Life Insurance Outlook. For 2016, it finds there are six forces for life insurers to manage.

“[These] forces will dominate the life insurance sector, driving insurers to transform their businesses on multiple fronts,” says Janice Deganis, EY’s Insurance Leader. For instance, “Life insurers will face stricter regulations and a weak economy.”

The full list of six forces is below, with each rated between one and 10 for overcoming them.

  1. Technology (9): Digital technologies will redefine life insurance in 2016, as customers push for new tools and services. But, these same technologies will help insurers transform their front and back offices. Read: Can your practice compete with automated advice?
  1. Customer expectations (8): Insurers will need to move to a customer-centric approach built around better access to data and better customer service.
  1. Cyber risks (8): Adding digital services and tools will expose companies to the risks of fraud, data theft and political activism. This will also be tied to the use of social media. Read: 5 actions to reduce fraud risk
  1. Competition (7): Competition will heat up throughout the year as established insurers bolster their services and as non-traditional providers enter the market.
  1. Economic and financial conditions (4): Uncertain economic conditions will continue, so companies will struggle with slow growth, the decline in the Canadian dollar and oil-price weakness. Read: Global trade growing, but Canada falling behind
  1. Regulation (6): Insurers will grapple with changing regulations such as modified policyholder taxation and, as of 2018, risk-based capital requirements.

Read the full 2016 Life Insurance Outlook. And, check out the below links.

Reasons to invest in life insurers

Why advisors should care about insurance self-injury exclusions

Are commissions taxable on personal policies?