A recent report by PwC US called, “Life Insurance 2020: Competing for a Future” revealed some interesting themes about what life insurance will look like in the future. In particular, four risks that the insurance industry must deal with in order to thrive and survive in the future. As consumers move toward more of a “demand now” mentality who are interested more on buying things quick online than talking to some insurance salesman, the industry needs to quickly adjust to keep up with this mentality.
Here are the 4 main conclusions of the report:
1) The overall market for life insurance has slowed down in the United States, but is picking up in emerging markets. This should be alarming to us for many reasons, including the fact that life insurance sales should be skyrocketing due to all of the baby boomers that should be buying it right now.
2) The distribution of both insurance products and education is moving digitally and the carriers that don’t adjust will be left in the dust
3) Information and analytics is becoming available through purchase data, social media, and other digital means that let the insurance carriers understand consumers and their buying needs better
4) Advancements in technology are changing the entire landscape including opening the door for new competition with better business models
So keep you eye on the life insurance industry over the next couple of years. You are sure to see some exciting changes!