Life insurance executives surveyed by LOMA for its 2013 Forecast are cautiously optimistic about sales this year, with several expecting a modest growth of around 3 percent. However, the executives say low interest rates are a concern.

"In terms of profitability, the industry will continue to be challenged by the low interest rate environment, as compressed margins will continue to present challenges and put pressure on earnings," said one senior executive.

The executives gave their views on other issues, such as technology, customer service and structural change:

• They said new technologies such as social media are changing consumer interactions and are here to stay. Mobile technology creates improved customer connections and will play an important role in the industry. And data analytics is beginning to be seen as having potential for life insurers.

• Customer service is also seen as a key factor. As consumers become familiar with cutting- edge service in other industries, they will expect similar service from insurers, one executive noted.

• The executives do not foresee major structural change in 2013, but some mergers are expected. One official said he expects some carriers will exit certain markets to focus on core offerings.

The 2013 Life Insurance Forecast is published in the January issue of LOMA's Resource magazine.  The compete Forecast may be read on the Resource page of the LOMA web site, http://www.loma.org/research/resource.aspx