Personalize every aspect of the customer experience develop flexible product solutions suitable for a challenging regulatory and interest-rate environment.personalize every aspect of the customer experience.To achieve these goals, we expect winning life insurance companies to outperform in three areas in the decade ahead: We believe the life insurance industry faces a pivotal, dual opportunity: the chance to fulfill growing customer needs while returning to profitability and growth. Johnny Wood, “Retirees will outlive their savings by a decade,” World Economic Forum, June 13, 2019,. History,” US Census Bureau, March 13, 2018, .Īnd many are expected to outlive their retirement savings. “Older People Projected to Outnumber Children for First Time in U.S. By 2030, all baby boomers will be age 65 or older, 1 The global middle class is rapidly expanding, bringing higher incomes, growing financial wealth, and heightened risks to manage.
Economic and demographic trends will also offer tailwinds. Public pension replacement rates are declining and healthcare expenditures are rising-trends also accelerated by the COVID-19 crisis. Indeed, the COVID-19 pandemic has only reemphasized the need for mortality protection. Several trends show promise for the life insurance industry in the next decade. Please email us at: Meeting the moment across three key areas If you would like information about this content we will be happy to work with you. We strive to provide individuals with disabilities equal access to our website. More recently, the COVID-19 pandemic has depressed global interest rates even lower than those seen in the 2007–08 global financial crisis, leading to disproportional impact on life insurance stock relative to the rest of the market (Exhibit 4). Globally depressed interest rates curtailed investment portfolio returns. Global penetration fell to 3 percent, and premium growth within most developed markets, hovering just below 2 percent per year, struggled to match GDP. Life insurers have not benefitted from the bull market (Exhibit 3). The past decade has also introduced new challenges. Digital and mobile advances have raised the bar on transparency and service quality: customers can now file claims and access agents, insurance quotes, and policy information with a few taps on a screen. The availability of data has skyrocketed, and insurers have made progress in advanced analytics and artificial intelligence.
ENGAGEX INSURANCE PROSPECTING DRIVERS
Developing economies-predominantly emerging markets in Asia that were formerly small contributors-have become global growth drivers and now account for more than half of global premium growth (Exhibit 1) and 84 percent of individual annuities growth (Exhibit 2). The global life insurance industry has seen significant changes over the past decade.