The retirement and pension industry is grappling with legacy systems, shifting demographics, regulatory complexities, and gaps between product offerings and participant behaviors. This Viewpoint analyzes how AI-driven solutions can revolutionize retirement planning by personalizing participant experiences, optimizing operations, and addressing persistent industry challenges. AI technologies, including generative AI and advanced large language models (LLMs), hold the potential to significantly enhance participant engagement and streamline operations across the value chain. By automating labor-intensive processes, personalizing investment strategies, and proactively addressing compliance requirements, AI can save the US retirement and pension industry approximately US$16-20 billion in operational costs. This study emphasizes practical approaches and key considerations to effectively and responsibly implement AI, ensuring enhanced transparency, ethicality, and regulatory alignment. Scope Industry: retirement and pension Geography: North America Contents In this Viewpoint, we examine: AI’s potential to close retirement readiness gaps and enhance participant engagement Legacy recordkeeping systems’ modernization through AI and cloud technologies Projected cost savings and efficiency gains from AI implementation across the retirement value chain Business case and RoI considerations for midsize retirement recordkeepers Strategic insights and recommendations for successful AI adoption, including overcoming transparency, bias, compliance, and data security challenges Memberships Insurance Information Technology Sourcing and Vendor Management

In 2023, insurance companies improved profitability through rate hikes, better underwriting, higher investment returns, and reduced systemic risk. However, the industry faces a significant challenge: over the past two decades, nominal GDP growth has outpaced premium growth. To address this challenge, insurers must innovate to meet individuals’ personalized needs and position life insurance as a lifestyle product. The COVID-19 pandemic has increased consumer awareness of life insurance, leading to steady growth in the US Life and Annuities (L&A) industry, driven primarily by individual annuities. The traditional L&A model, which relies on third-party distributors such as independent advisors, brokers/dealers, and banks needs to address key growth drivers to capitalize on this trend. In this report, we analyze trends and outlooks in the L&A industry across various lines of business while exploring the emerging era of personalization, where life insurance is evolving into a lifestyle product. We examine how the industry can develop wellness products that integrate wealth management, retirement planning, healthcare, and insurance. We also discuss the role of leveraging third-party tech ecosystems, data platforms, and AI in this transformation. Additionally, we analyze trends in the global retirement and pension industry and the insurance IT services market, providing insights, growth outlook, and implications for providers. Scope Industry: Insurance Geography: global Contents In this report, we Analyze insurance IT services market trends, growth outlook, and global sourcing patterns, highlighting implications for providers Identify opportunities and risks insurers face in a challenging market environment Explore how third-party technology providers, data platforms, and AI contribute to developing holistic life insurance, wealth management, and retirement products Identify the trends in the retirement and pensions markets of North America, Australia, and UK&I, and explore upcoming IT modernization opportunities in these regions Membership(s) Insurance Information Technology Insurance Technology (InsurTech) Sourcing and Vendor Management

The US retirement industry addressed a market of approximately US$37.5 trillion in assets as of Q1 2022, growing at a CAGR of 8-9% over the last four years. With growing inflation, uncertainty around social security benefits, and post-pandemic economic concerns – people are looking to retirement plan providers for guidance. However, market participants face multiple challenges, such as changing regulations around retirement and pensions, the increasing demand for digitization, the burden of age-old legacy systems, and evolving customer preferences and risks. Industry participants are undertaking technology-driven transformation to resolve these challenges and become more agile and scalable. In this report, we outline the key challenges and technology spend priorities for enterprises and evaluate significant retirement technology providers and their market offerings. Scope Industry: retirement technology Geography: North America Contents In this report, we: Provide an overview of the retirement technology provider market Examine the profiles of key retirement technology providers Membership(s) Insurance Information Technology Sourcing and Vendor Management

The US retirements industry represents the world’s largest addressable retirements market, encompassing over 75 million participants. It grew from US$25.3 trillion in 2016 to US$39.4 trillion in assets under management through December 2021. The industry is facing multiple challenges today – a shifting regulatory landscape, increasing burden of legacy systems and processes, evolving customer expectations, and increasing scrutiny on cybersecurity and data privacy measures. Players in this market are looking to adopt IT and technology to help them cope with the growing cost pressures and increase agility and scalability. We expect IT services spend to increase at 9-11% between 2020 and 2023 as the industry invests in a data-driven evolution. The IT services market is well-positioned to guide retirements industry players through their modernization and digitization roadmaps. This report highlights the key challenges and growth drivers of spending in the retirements IT services market. The study also looks at key IT service providers in this space and covers their scale, capability, offerings, and client success stories. Scope Industry: Retirements IT services Geography: North America Contents In this report, we share: Provide an overview of the retirements IT services market Retirements IT service provider profiles Membership(s) Insurance Information Technology Sourcing and Vendor Management

The US retirements industry represents the world’s largest addressable retirements market, comprising over 75 million participants. It grew from US$25.3 trillion in 2016 to US$35 trillion in assets in 2020. The US retirements market serves a demography with four generations and varying preferences. The workforce has shifted to more mobile workers and small business owners who have recently gained access to retirement plans. This market diversity is creating a wide range of consumer priorities. Upcoming proposals under the Biden administration are set to bring about increased regulatory scrutiny and amendments to legislations such as AUTO (K) and the tax credit structure, the SECURE Act 2.0, and the introduction of Pooled Employer Plans (PEPs). This report studies the market trends, participant strategies, and implications of the fast-evolving landscape on retirement market participants, IT service providers, and technology providers. Scope Industry: retirements Geography:US Contents In this report, we share: An overview of the US retirements market Challenges the industry faces due to evolving regulations, consumer demand shifts, and profitability pressures Key investment priorities for participants in the retirements industry Implications for retirement firms, technology providers, and IT service specialists in the market Membership(s) Insurance Information Technology Sourcing and Vendor Management

In this research, we take a deep dive into the recordkeeping function of the Defined Contribution (DC) plan administration business, analyzing the DC market and the recordkeeping function and exploring the challenges recordkeepers face as a result of their legacy technology estate. We provide the business case for recordkeeping system modernization, demonstrating the cost and operational efficiencies, along with improved customer experience and meaningful, data-driven insights that modernization enables. We also analyze the offerings of eight leading recordkeeping platform vendors and cover the approaches for core system modernization for recordkeepers. Scope In this report, we analyze the following eight recordkeeping platform vendors’ offerings: Avenu, Congruent, FIS, Infosys, Milliman, Oracle, Sapiens, and Tata Consultancy Services Content This report includes the following topics: Background and scope of our analysis of the US DC recordkeeping market Deep dive into the DC recordkeeping market The business case for modernization Recordkeeping platforms landscape and the approaches to modernization Membership(s) Insurance - IT Services (ITS)