Life insurance and annuities industry remade by COVID-19 has been saved
Life insurance and annuities industry remade by COVID-19
Scenarios for resilient leaders
Insurers must prepare for the future, but uncertainties make it difficult to predict. These scenarios explore how the life insurance and annuities (L&A) industry landscape may develop over the next one to three years and helps leaders explore some of the potential medium-term implications of COVID-19.
The life insurance and annuities industry has faced significant headwinds over the past few years, which have been further exacerbated by the COVID-19 pandemic:
- Sustained low-interest-rate environment
- Elevated expectations around customer experience
- Challenging operating environment for agents
- Workforce and workplace uncertainty
Given the numerous uncertainties, we explore how the insurance sector might evolve over the next one to three years so leaders can:
- Explore how trends we see during the pandemic could shape what insurance may look like in the medium term.
- Have productive conversations around the lasting implications and impacts of the crisis.
- Identify decisions and actions that will improve resilience to the rapidly changing landscape.
- Move beyond responding to the crisis, and towards recovering in the medium term.
In the wake of COVID-19, Deloitte and Salesforce hosted a dialogue among renowned scenario thinkers to consider the potential societal and business impact of the pandemic. The results of this collaboration can be found in The world remade: Scenarios for resilient leaders.
Four life insurance and annuities COVID-19 insurance scenarios
The current crisis could unfold in four ways over the next one to three years.
For an in-depth discussion of the four scenarios, economic implications across geographies, and information on the potential opportunities and challenges facing the L&A industry, download the PDF here.
L&A carriers must assess implications across three main dimensions
- Customer implications: Customers and distribution
- Business model implications: Products and underwriting
- Competitive implications: Incumbents and new entrants
Scenarios for resilient leaders in a post-COVID-19 world
Considerations from an actuarial and finance perspective