What are the key global trends in the life insurance industry in 2020? What do you insurers and policy holders need to know about the disruption that is about to happen in the insurance field? How about challenges ahead?
The insurance industry is a major component of the world economy. Most importantly is the effect it has on the United States of America’s economy by virtue of the amount of premiums it collects, the scale of its investment and, more fundamentally, the social and economic role it plays by covering personal and business risks.
Challenges facing insurance companies in developing countries are worse compared to what you will notice in countries like the United States, Canada and Australia.
A key part of the insurance industry is the life insurance which is very essential for every household and it’s a wise course for every individual to apply for it.
What is Life Insurance?
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay the beneficiary a sum of money in exchange for a premium, upon the death of an insured person depending on the contract. Other events such as terminal illness or critical illness can also trigger payment.
The policy holder usually pays a premium, either regularly or as one lump sum. Other expenses like funeral expenses can also be included in the benefits.
Some Major Statistic about Life Insurance Industry
Preliminary data for 2018 shows an increase in gross premiums of domestic insurance companies in most countries and most especially in the United State of America, especially in the non-life sector, according to an Insurance Markets research.
The report further states that gross premiums rose in real terms in 28 of the 52 reporting countries in both life and non-life sectors, in 16 other countries in the non-life sector only and in some other 5 countries in the life sector only.
The only place that premium recorded a decline in both sectors was only in Ireland, Finland and Turkey.
Related: Life Insurance in Malaysia and 2020 Key Trends
The gross premiums continued to rise in most countries in the life and non-life insurance sectors in 2017, according to Global Insurance Market Trends. In the report many of the largest increases occurred in countries with relatively low insurance penetration where the insurance industry is developing.
The aggregate trends for the life and non-life insurance businesses may however hide differences in dynamics demonstrated in each type of insurance policy and the risk insured.
The Life insurance market is huge when we consider the statistics we currently have at hand.
The Asia-Pacific will occupy for more market share in years to come, especially in China, also fast growing India and Southeast Asia regions.
The United State of America will still play an important role which cannot be ignored. Any changes from United States might affect the development trend of Life Insurance globally.
2020 Life Insurance Trends in Europe
Europe will also play some important roles in the global market, with market size in millions of dollars in 2019 and it is projected to go higher than that in 2024.
Related: Can I Sell My Life Insurance? And, If I Can, Should I?
This statistics of Life Insurance market is about the status and outlook of Global and major regions, from angles of players, countries, product types and end industries; this report analyzes the top players in global market, and splits the Life Insurance market by product type and applications industries.
Check Some Key Providers in the Life Insurance Market :–
- Nippon Life Insurance
- American Intl. Group
- Assicurazioni Generali
- State Farm Insurance
- Dai-ichi Mutual Life Insurance
- Munich Re Group
- Zurich Financial Services
- Asahi Mutual Life Insurance
- Sumitomo Life Insurance
- Swiss Reinsurance
- CNP Assurances
- Meiji Yasuda Life Insurance Company
- Standard Life Assurance
- WanaArtha Life
- Asian Life Insurance Company
- AIA Group Limited
- China Life Insurance Company Limited
- China Ping An Life Insurance Company Limited
- ACE Group
Global Challenges Facing Life Insurance Market
The increase in customer demand for online insurance buying and servicing experience, increase in expectations from distributors for business on the move, rising competition from new entrants and non-traditional players, balancing legacy maintenance costs while also investing in digital technologies, emerging threats such as cybersecurity breaches and the resultant changes in the regulatory landscape are the key areas that drive digital technology in insurance companies.
Life and property & casualty insurers have been traditionally slow to adopt new technologies compared with their retail or banking counterparts but we observe that insurers are increasingly looking at digital technology as key to address most of the challenges that the industry faces today and enable them to adapt to changing business requirements.
Related: Top 3 Challenges Facing Insurance Industry and How to Overcome Them
The wonderful news is that some carriers have already started strategic investments in transformative technologies to stay relevant in the market and remain competitive while others are being cautious.
Life insurance is a very difficult product to sell; it requires people to think about their deaths without promising any immediate returns and despite tech innovations and the development of different services in other areas of finance.
But we now have some companies that are finding ways to digitize life insurance to appeal to consumers and they’re giving incumbents the opportunity to revamp traditional offerings, either by partnering with them or using their technology.