Among the top trends in life insurance for this year include firms revamping customer journeys and updating systems to increase client retention.
The predictions are made in CapGemini’s Top Trends 2025 – Life Insurance which also expects insurers will offer value-added services to the silver economy “…to enhance customer lifetime value and capitalise on aging demographics.”
The firm, which has local representation in six location across the country, also expects more growth in ‘intelligent’ technologies to help advisers assess clients’ needs and personalise recommendations.
Predictably, the company expects to see more use of AI technology for life customer onboarding, automated risk assessments, and the use of third-party data for what it terms “…low-touch and enhanced customer experiences”.
Client retention is also expected to become a part of insurers’ strategy as they work to retain capital through customer engagement and the evolving economic landscape.
The report also states life insurance policy holders are “underwhelmed” with 55% being dissatisfied with claims and surrenders. More than half (51%) are frustrated with the onboarding process, and 48% displeased with the service level.
The report’s authors also point to digital natives stating a third (34%) of life insurers are now focused on this cohort by offering AI-driven self-service options.
However, underlying these changes are legacy systems that, according to the report, are holding back more than half (52%) of the world’s life insurance firms “…limiting their ability to meet customer expectations”.