Library: Capgemini’s Setting the Stage For Tomorrow’s Carriers And Customers To Thrive

Capgemini’s report “Setting the Stage For Tomorrow’s Carriers And Customers To Thrive” highlights the need for life insurance carriers to adapt their business models, products, and marketing strategies to cater to the next generation of consumers, including Generation X, Millennials, and Generation Z, as baby boomers phase out of the target market.

Key Points

• The global protection gap reached a new high of USD 1.8 trillion from 2018 to 2022, indicating a 20% cumulative five-year increase, as younger generations are not purchasing life insurance with the same vigor as previous generations.
• Insurers need to adopt a customer-centric mindset, redesigning systems, processes, and strategies around the customer’s needs, and providing flexible, more inclusive, multi-purposed products with a focus on life rather than death to appeal to younger customers.
• The report suggests eliminating legacy systems, structures, and processes that no longer serve the objectives of the business, evaluating the effectiveness of current systems in meeting the changing needs of customers, and considering implementing new core systems if necessary.
• The report highlights three insurance giants – New York Life, AXA, and Zurich – that have adopted new, customer-centric systems to optimize their services and offerings for the next generation by leveraging technologies such as API wrappers, cloud solutions, and low-code platforms.
• Capgemini’s research found that 74% of policyholders seek additional valuable services tailored to their needs, emphasizing the importance of offering personalized, value-added services to engage with customers across multiple generations.

Conclusion

As the United States approaches the greatest wealth transfer it has ever seen, life insurance carriers must recognize the changing needs, expectations, and consumer behaviors of the next generation of insureds and beneficiaries. Capgemini’s report emphasizes the necessity for insurers to transform their systems, adopt a customer-centric mindset, and innovate their product offerings to stay relevant and succeed in the future market.

Link to full report: click here

The TDI editorial team uses AI to support the creation of this summary, but all content is reviewed and edited before publication.