Private retirement provisions are getting more and more important – not least because of current low interest rates, increasing longevity and state pensions which in general tend to decrease. Further on, best ager treasure up their wealth on simple savings accounts. Last but not least, partial tax incentives and unique selling propositions are adding additional pros to the account of life insurance industry. All in all, a really perfect environment for life insurance business, isn’t it?
Safety and peace of mind are one of the essential needs of almost each and every human being and this has been delivered by life insurance business for decades and centuries. Thus, one might think that life business is still blooming and that it will last forever.
However, there are some «buts» that make life a little bit miserable and that may sound the bell for an end of paradise: increasing competition, stagnating new business, more critical customer, more strict regulation, potential competitors from outside the industry, fintech movement and much more. Disruptive innovations are naturally present from times out of mind and they will stop at nothing – not even at life insurance business. Life business will change.
The core idea and need of insurance will last but this may not hold true for each and every life insurance company. «It is not the strongest (…) that survive, nor the most intelligent, but the ones most responsive to change» (Charles Darwin).
Well, what about being responsive?