current
Life Insurance Seeks Relevance
The life insurance industry is facing challenges to its relevance and seeking new avenues for growth beyond traditional products.
Timeframe
near-term
Categories
Impact areas
Detailed Analysis
The life insurance industry is experiencing a period of mixed signals, with some segments showing growth while others stagnate. The report notes that "while there were bright spots, the industry overall is struggling for relevance." While macroeconomic conditions have been favorable for certain products like annuities, traditional products like term life and endowments are facing stagnant demand. The industry is seeking new sources of growth beyond its core products, such as retirement solutions, integrated wealth and health solutions, and new ways to serve customers and advisors. This requires a rethinking of traditional business models and a focus on innovation and customer experience to regain relevance in a changing market.
Context Signals
Individual annuity sales boomed in the US, but other products and markets saw muted growth.
Life insurance penetration in the US has dropped significantly.
Private capital is flowing into the life insurance industry, contrasting with skepticism in public markets.
Edge
Development of innovative retirement solutions and integrated wealth and health offerings.
Focus on enhancing customer experience and leveraging digital channels.
Strategic partnerships and acquisitions to expand capabilities and reach new customer segments.
