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.

Click image to enlarge

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

  1. Customer implications: Customers and distribution
  2. Business model implications: Products and underwriting
  3. Competitive implications: Incumbents and new entrants

Get in touch

Paul Nelson
Principal, US Insurance Strategy leader
Deloitte Consulting LLP
+1 617 437 3257
Kristen Stuart
Principal, Cross-Industry Strategy
Deloitte Consulting LLP
+1 617 449 5022
Puneet Kakar
Principal, Insurance Strategy
Deloitte Consulting LLP
+1 212 829 6210

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