The United States is facing a retirement crisis, and the financial industry is evolving to respond to it. This TowerGroup Research Note discusses the approach that US financial institutions are taking to solve this crisis. The Note evaluates an array of retirement income products and discusses why TowerGroup believes that the demand for financial advice will grow and that advisory services not products is the solution to the retirement income challenge. Finally, the Note discusses some emerging technologies that will radically alter the way financial advice is offered in the United States.

Claims outcomes drive bottom-line results, so it is important for insurers to understand the impact of recent economic events on claims operations and the way business drivers have evolved as claims processes have been automated. This Research Note analyzes the results of TowerGroup's primary research among leading insurers in 2007 and 2010 regarding claims operations. It also reflects the business requirements expressed to claims technology providers by claims executives seeking technology solutions. Business processes identified by carriers as critical in 2007 are contrasted with those seen as mission-critical in 2010 to show the evolutionary path of the claims settlement process.

First quarter 2010 global catastrophe losses were not typical because of events such as the earthquake in Chile and winter storm Xynthia in Europe. The loss of the Deepwater Horizon Drilling Platform in second quarter compounds the problem. Looming large is the Atlantic basin hurricane season. This TowerGroup ViewPoint relates the unusual events of first and second quarter catastrophe losses with the almost certain reaction of the global reinsurance market in the event of a major US landfall hurricane. The report discusses what carriers must do to guard against adverse bottom-line results.

The sovereign debt crisis in Greece is spreading to other sovereign states in the Euro-zone. The crisis has demonstrated the fragility of the European Monetary Union (EMU), and it threatens the development of a pan-European financial services market. This TowerGroup ViewPoint, which is based on the successful hypotheses set out in March 2007 in TowerGroup Research Note V50:29ES, The European Monetary Union (EMU) Beyond 2010: Untested Assumptions, examines the current realities of the crisis and concludes by hypothesizing its impact on the environment for financial services institutions and technology vendors at the end of 2012.

With the popularity of all things Web, geckos, and a spunky TV persona named Flo, insurers feel pressed to consider a direct-to-consumer channel if they are not yet in that market segment. The decision to distribute via multiple channels should not be made lightly. Before fulfilling the technology requirements, insurers need to address internal issues such as distributors' reaction to the threat of a new channel, managing customer experience across channels, changing roles and skills for employees, and conflicts in key performance indicators. This Research Note covers the internal assessments and technology considerations that will drive success in the direct-to-consumer channel.

This Research Note discusses the current business climate in the global financial services industry and presents TowerGroup's projections of the state of financial services in three to five years' time. The Note offers recommendations on how financial institutions should invest their scarce technology dollars in the interim to keep pace with client expectations and to gain competitive advantage in a time of disruption unmatched in the memory of anyone actively involved in the industry today.

Despite hopeful signs, the global financial services industry enters its third year of instability with much work to do. Finance ministers of the major economies wrestle with harmonizing and modernizing regulatory oversight, determining adequate levels of capital, and deciding how big is "too big to fail." Financial institutions are reconsidering risk, value, and what parts of the business to keep. Clients are reevaluating their relationships, using new technologies for self-service, and changing their financial behavior. This Research Note discusses the 10 most important business drivers, strategic responses, and technology priorities for the financial services industry for 2010.

Economic recession has led many insurance carriers to retrench, jettisoning lines of business in which risk is excessive or they lack expertise. Risk management is high on everyone's "to-do" list. Innovation seems a dirty word, but carriers should not ignore an area that holds great promise: microinsurance. The sheer population size of the emerging nations calls for a new view of markets. This TowerGroup Research Note explores this unique market segment, and since innovation is the cornerstone of all successful microinsurance ventures, it concludes with a list of lessons carrier can learn from microinsurers, even if they do not wish to offer microinsurance themselves.

Although most life and annuity carriers may be in recovery mode, lower product margins and shifting requirements will force enterprises to overhaul or replace their existing policy administration systems. For this Research Note, TowerGroup interviewed life policy administration vendors about the details of their products, implementations, and geographic coverage. The Note provides analysis of the leading vendors, their life policy administration products, and the products' market share and scope of functionality.

Consumer advocates have long played a role in the running of the insurance business, usually with a contentious relationship with the insurance industry. Occurrences at the recent Winter Meeting of the National Association of Insurance Commissioners, held in December 2009, signal a potential change in the landscape of private employed consumer advocates. Two trends are merging that suggest such advocates may become obsolete. This TowerGroup ViewPoint examines the expanding role of Web communications in consumers advocating for themselves as well as the increasing amount of collaboration among insurers to address specific problems with fundamental impact on consumers.