Diamond's Retirement Study Finds Companies Ill-Prepared to Meet Baby Boomers' Health and We...(. -- 46% say they could not afford a ...),Health

-- 46% say they could not afford a medical emergency, yet only 21% have

disability insurance.

What can companies take away from these findings? Banks, insurance companies, and financial advisory firms traditionally focused on managing specific risk characteristics-banks dealt with market risk and income risk, insurance carriers with mortality risk and morbidity risk, and financial advisors with longevity risk and market risk. But boomers need products that are more integrated, products that take into account how one type of risk affects another, according to the study.

Diamond's analysis finds that some consumer needs cut across multiple segments, such as consumer education and understanding risk. But in general, baby boomers are best served through a segmented approach.

Companies Need to Pick up the Pace

"For companies, it means being able to view retirement from two perspectives, simultaneously," said Tom Weakland, Managing Partner of Diamond's Healthcare practice. "Healthcare, financial services, and insurance firms should take a broad view of the overall retirement market, looking across industry lines. At the same time, the vast differences among consumers and their needs should drive companies to remain intensely focused on targeted market segments."

Companies that succeed in the retirement space will have four distinguishing traits that will help set them apart:

-- Defined role in the emerging market -- Trying to be all things to all

people is unlikely to be an effective strategy.

-- Tangible commitment to be a leader in the retirement marketplace --

Dedicated resources and capital are required to stake a claim in the

retirement market.

-- Alignment across the organization -- Delivering the breadth of products

and services retiring boomers expect requires collaboration and

cooperation, not corporate silos.

-- Demonstrated commitment
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