A new sigma report by Swiss Re Institute has called for life insurers to work hand in hand with banks, advisers, and other distributors to keep up with the rising demand.
The report has disclosed a generational shift in several pension systems is transferring responsibility for retirement income, inheritance planning, and later-life care from institutions to individuals.
The shift is creating opportunities for insurers, banks, and advisers to reach people before retirement, when they are making critical decisions about how to manage their savings, generate income and protect their wealth, explained the sigma report.
James Finucane, Head of Life & Health Economic Research, Swiss Re Institute, said, “As people take greater responsibility for their retirement, trusted advice becomes more valuable. This is changing the economics of how consumers purchase insurance/" style="color:#c0392b;font-weight:700;text-decoration:underline;" class="hta-topic-link">life insurance and increasing competition in the industry. For consumers, this is a positive as greater access to insurance protection and retirement solutions can strengthen households’ long-term financial resilience.”
It can be said that as banks and advisers are playing a bigger role in how life insurance and later-life care products are sold, there is increased competition, which is attracting new investment into the market.
Swiss Re Institute said, “The race is already reshaping the life insurance market: just three private equity-backed US companies completed more than 300 acquisitions between 2017 and 2025.”
Velina Peneva, Chief Executive Officer, Life & Health Reinsurance, Swiss Re, commented, “Life insurance is here to help people navigate some of the biggest financial decisions in their lives. Making insurance easier to understand and access can support the identification of the right solutions. By combining the strengths of insurers, advisers, banks and technology, our industry can help more people get the protection and financial security they need, when they need it.”
Additionally, the report reiterated the importance of making products and services easy for advisors and customers to understand, recommend, and put in place.
Along with this, the report identifies the years before retirement as a critical period, when decisions about income, investments, inheritance and future care often begin to take shape.
Lastly, Swiss Re Institute’s sigma study that reviewed 197 publicly reported AI and technology initiatives from leading global life insurers and selected intermediaries, found that around 70% focus on the parts of insurance that consumers experience directly.
The report explained, “Technology can also help advisers find information, compare options and take care of administrative and follow-up tasks. The aim is simple: less time spent on administration and more time helping people make the right decisions. While AI can make advice and processes more efficient, people still rely on human help for more complex decisions. That balance between technology and human advice will matter even more as pension systems evolve.”
