The life insurance industry should focus on a younger audience in the middle market, according to senior life insurance executives speaking at a national conference.

"Middle market will be the growth engine for the future," said Thomas M. Marra, president and CEO, Symetra Financial Corp. "Companies will need to return to the basics of life insurance to reach this market. With estate taxes (exemptions) at $5 million and $10 million for one person or a couple, opportunity in the affluent market will be diminished. The days of hunting elephants are probably over."

Marra and other executives spoke before 550 attendees at the 2011 Life Insurance Conference in Las Vegas.

"Leveraging technology will be the differentiator to capture more marketshare – especially with younger consumers. Building a strong dot.com space and using social networking site will fuel future growth," J. Eric Smith, president of USAA Life Insurance Co.

The panel, moderated by Robert A. Kerzner, president and CEO of Windsor’s LIMRA, LOMA and LL Global, also tackled the distribution challenges that continue to face the industry.

"It’s clear, we need more producers to reach the middle market," said Gary "Doc" Huffman, president and CEO, Ohio National. "We, at Ohio National, have expanded distribution consistently since 2005 and as a result have captured more marketshare. But it is very difficult in the first three to five years for a new agent. Our industry needs to find a better way to attract and retain the younger generations as they enter the business."

The panelists agreed that the current low-interest rate environment – if sustained – will have a deleterious impact on products with guarantees. Pricing products appropriately will be the challenge. Smith, however feels that "companies will get creative" to provide their customers with a fiscally sound product that provides the guarantees consumers are seeking.