For centuries, the insurance industry has offered protection against the most serious threats faced by individuals, families, businesses, and society at large. Today, a combination of economic, technological, competitive, demographic, and societal shifts – plus the COVID-19 pandemic, climate change, and racial inequality – have made the industry’s purpose more relevant and important than ever.
All types of insurance require a clear purpose and strong protections. But the life and retirement industry faces a unique set of challenges and opportunities. With vastly underfunded government-sponsored retirement programs and rising insecurity about the future, more people are looking for protection and income solutions. But to meet the moment, life insurers must navigate persistently low-interest rates, as well as modernize technology, update their product and service offerings, refine distribution models and retool the workforce. There are multiple challenges to be managed at once.
However, the potential upside is compelling for those companies that can master the many moving parts of the transformation. The projected US$240 trillion retirement and US$160 trillion protection gaps in 2030 point to the industry’s growth potential – and its ability to make a huge contribution to the overall well-being of society.