Despite going into 2011 with slightly rising premiums, a new study from Ernst & Young finds the U.S. life and annuity insurance industry will be challenged by broad regulatory changes and an uncertain economic environment.

According to Ernst & Young’s Global Insurance Center 2011 US Outlook for the life insurance industry, insurers will need to create new products and services and leverage distribution channels to increase top line growth, while paring down costs and unprofitable risks to drive bottom line earnings.

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