It's clear that the insurance industry faces seismic disruption as these new levels of technology-led convenience collide with the need to serve a diverse customer base. As demographics move toward a higher life expectancy, insurance companies will need to accommodate an increasingly elderly population alongside younger generations with dramatically different attitudes and values. These will combine to present challenges and opportunities.
Though an aging population will strain labor supply, productivity, and welfare systems, it also presents huge opportunities for insurers to take a proactive and advisory stance. Insurers will be well placed to create more engaged relationships with customers by providing those moving toward retirement with life insurance and healthcare policies. Insurers could also nudge customers toward better financial behavior as they approach retirement. New forms of care models and financial planning services could develop to give consumers peace of mind and allow retirees to plan for a better standard of living.
As insurers respond to the pressures facing older generations, they must also accommodate the wants and needs of younger generations of insurance buyers: millennials (digital natives who seek experiences over possessions and are happy to adopt new technologies regardless of brand loyalty) and Generation Z (deemed entrepreneurial, money-wise, tech-savvy, and competitive). These customers will expect lifestyle insurance products that fulfill their new, exacting, and constantly evolving requirements, such as coverage for groups of housemates renting together and insurance for gig-economy workers. These will need to arrive via transparent mobile apps that bring policy information and payment platforms under one roof.