Capgemini – Life Insurance Report, 2023

Capgemini's report highlights the opportunity that life insurers have to engage with individuals aged 50 and above, also known as the "50+ population", in order to boost their relevance and accelerate growth. As this demographic group seeks comprehensive and flexible solutions to age well, life insurers can play a crucial role in providing financial security, physical health, and a better quality of life through life insurance and retirement solutions. The report emphasizes the impact of increased life expectancy on the insurance industry, with the global 50+ population projected to double from 1990 to 2050. This demographic shift, coupled with declining governmental support and rising healthcare costs, leads to individuals having to shoulder more financial responsibility for aging well. Consequently, the retirement protection gap is projected to quadruple by 2050. However, barriers such as product complexity and limited awareness hinder the adoption of life insurance, resulting in slow growth and limited relevance for insurers. Furthermore, the industry faces potential outflows of nearly 40% of life insurers' assets under management by 2040 due to intergenerational wealth transfer. Thus, it is crucial for insurers to strengthen relationships with aging policyholders and their beneficiaries. To satisfy policyholders' pre- and post-retirement needs and meet the demand for aging-well services, insurers are advised to digitally augment distribution, strengthen ecosystem partnerships, and provide value-added services for deeper engagement with customers. Insurers that enhance touchpoints across the customer lifecycle, move towards a customer-centric approach, and prioritize transforming the customer experience based on aging-well gaps and opportunities will protect their current assets and unlock future growth. This includes offering a broad range of ecosystem services, modernizing technology, and enhancing data management capabilities. Overall, insurers that successfully evolve and strengthen engagement will fortify trust across generations and minimize the risk of losing assets.