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Financial services

WORLD LIFE INSURANCE REPORT 2023

The aging well opportunity: how trust and engagement can unlock growth for insurers

Individuals aged 50+ will represent 33% of the world’s population by 2050, and this demographic shift presents life insurers with a significant opportunity for business growth.

Findings from the World Life Insurance Report 2023, which reflects the views of over 200 insurance executives and 6,775 consumers, reveals that capturing this opportunity requires action beginning now:

  • Elevate technology and data management capabilities to augment offerings and deliver superior customer experience.
  • Engage with ecosystem partners to develop comprehensive life solutions to better meet the needs and expectations of the aging population.
  • Increase engagement with customers and their beneficiaries to fortify trust, increase insurance relevancy, and protect assets now and in the future.

Key highlights

Highlight 1

Life insurers are poised to experience a significant outflow of assets under management by 2040

Amidst history’s largest wealth transfer, the life insurance industry faces financial uncertainty. Currently, policyholders aged 65 and above own 40% of insurers’ assets under management (AUM), which for the 40 largest life insurers globally totals USD 7.8 trillion. By 2040, these assets are poised to be transferred to beneficiaries, with 71% going to those aged 50 and above.

What do the affluent and mass-affluent customers over age 50 seek?

The opportunity starts with the affluent and mass affluent consumers. Our report indicates their pre-retirement priorities include maintaining the current standard of living, financial planning, and funding leisure. Post-retirement, these priorities persist, with healthcare funding gaining significance. Intergenerational wealth transfer ranks lower, presenting a chance for insurers to engage with policyholders and beneficiaries effectively.

Leverage value-added services to meet customer needs

To engage with policyholders and beneficiaries the opportunity is to offer value-added services. In fact, customers increasingly seek these services – from wellness initiatives and medical assistance to tax and estate planning and assisted living – to realize their goal of aging well. Insurers, too, increasingly recognize the need to provide such services.

Insurers report limited technology and data maturity

To unlock deeper engagement, the industry seeks advanced tech and robust data analytics for developing one-stop aging well solutions, streamlining the purchase journey and elevating claims experience. Yet, our survey reveals a lag in insurers’ tech and data maturity, hindering their attempts to leverage cloud computing, and AI for streamlined operations and data-driven decisions.

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Meet our experts

Shane Cassidy

Executive Vice President, Financial Services; Insurance Business Unit Leader, Capgemini Financial Services

Adam Denninger

Adam Denninger

Global Industry Leader, Insurance

Samantha Chow

Global Head, Life Insurance, Annuities, and Benefits Leader, Capgemini Financial Services

Kiran Boosam

Vice President, Financial Services; Global Insurance Industry Strategy and Portfolio Leader, Capgemini Financial Services

Aruna Mahesh

Aruna Mahesh

Insurance Consulting and Innovation Leader

Stanislas de Roys

Managing Director, Capgemini Invent

Elias Ghanem

Global Head of Capgemini Research Institute for Financial Services

Luca Russignan

Head of Insurance, Capgemini Research Institute for Financial Services

Executive Roundtable Participants

Michele Rendine

Michele Rendine

Group Chief Life & Health Officer

Generali

Frank Le Landais

Frank Le Landais

Chief of Staff to the Head of Sales

Allianz

Izu Atsushi

Izu Atsushi

Head of Innovation Lab, London

Dai-ichi Life

Bernardo Castello

Bernardo Castello

Chief Product Officer

Bradesco Seguros

Rachel Hall

Rachel Hall

CA, VP, Service Excellence & Operational Effectiveness, Life Operations

The Wawanesa Life Insurance Company

JS Ledoux

JS Ledoux

Head of North American Product Management

Foresters Financial

Nelson Machado

Nelson Machado

Executive Committee Member

Ageas Portugal

Rebecca Tadikonda

Rebecca Tadikonda

EVP, Strategy & Innovaiton

Athene Holdings

Paul Tyler

Paul Tyler

Chief Marketing Officer

Nassau Financial Group

Chad Hersh

Chad Hersh

Head of Worldwide Market Development, Life Insurance Industry

AWS

Ramsey D. Smith

Ramsey D. Smith

Founder & CEO

ALEX.fyi LLC

Kim Vogel

Kim Vogel

Vice President – Insurance

Microsoft

Dustin Yoder

Dustin Yoder

Founder & CEO

Sureify

Capgemini recognized as a leading robotic process automation service provider for Financial Services Institutions

Saving through a crisis with Capgemini

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