GLOBAL TRENDS IN THE LIFE INSURANCE INDUSTRY

In 2021, we continued to see certain focus areas rise to the top of conversations and strategic roadmaps for insurtechs and carriers alike. There was rising interest in not only delivering a great customer experience, but also meeting these potential buyers where they are, digitally, and engaging them with products that suit their health and wellness needs – all from a secured and private interface.

As we move into 2022, we expect the industry to continue with the trajectory in meeting customer expectations. It is evident that the focus on consumer health will continue to grow (in Q2 and Q3, 2021, health insurance was the most invested-in sector¹) and carriers will find more opportunities to acquire customers in not so obvious, but relevant, places.

Five global trends that we expect to have an outsized impact on the Life Insurance industry:

1. The intersection of health, wealth and data will drive future product development.
2. Insurance products will be increasingly embedded into experiences to simplify the consumer buying journey.
3. Investment and collaboration with insurtechs will continue to rise as carriers seek new capabilities, diversified talent, and speed to market.
4. The insurance industry will develop infrastructure to enable the next wave of innovation.
5. The great resignation will have a lasting impact on the insurance workforce and insurance innovation.

The pandemic has led to an increased awareness and importance of health (physical and mental) and financial protection. This is shifting the pendulum of the century-old ‘sold versus bought’ model for insurance products.  So, Let’s not let the insurtechs off the hook. However Raising funds, building teams, landing customers, and validating business models is no small feat. Insurtechs will continue to seek out carrier investment and partnership to validate them. Large institutions may be comparatively bureaucratic and slow, but they help substantiate the entrepreneurial vision, provide credibility when seeking other potential investors, and provide access to customers.