Consulting Firm Identifies Five Distinct Baby Boomer Market Segments
CHICAGO, March 4 /PRNewswire/ -- Throw conventional wisdom and industry fault lines out the window. Financial services firms, insurers, and healthcare payors admit they will need to add new capabilities as they prepare to serve baby boomers, who will control some $40 trillion in retirement assets by 2020.
Boomers, who make up the wealthiest generation in history, face tremendous uncertainties about how they will fund their retirement, and how wealthy they will be during those years. Those that fail to plan accordingly now will fall short of their expectations.
The companies planning to serve the boomer market run a similar risk of missed expectations, according to a new study by Diamond Management & Technology Consultants, Inc. (Nasdaq: DTPI). Unless they consider new strategies now, financial services firms, insurers, and healthcare payers will lack the flexibility to survive in a changing health/wealth market.
For example, while 89 percent of insurers Diamond surveyed believe that "making products simple for their customers to understand" is a source of competitive advantage, only 23 percent believe they have effectively developed that capability.
In its "Retirement Study 2008," Diamond analyzes how the convergence of health, wealth, and risk management is creating new business opportunities for companies that adopt a broader vision of the services they offer as well as a more precise view of the boomers they serve.
Diamond's research finds that many companies are ill-prepared to help
boomers meet their retirement needs. Among financial advisors, 77 percent
see speed-to-market in bringing new products and services to the boomer
|SOURCE Diamond Management & Technology Consultants, Inc.|
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