10 ID Trends 2020
Life Trends
Fulfilling customer needs ; returning to profitability
The following is an excerpt from The future of life insurance : Reimagining the industry for the decade ahead , a McKinsey & Company special report .
By 2030 , the number of people aged 60 and older will grow by more than 50 percent , from 900 million in 2015 to 1.4 billion .
Several trends show promise for the life insurance industry in the next decade . Customer demand is at an all-time high . Indeed , the COVID-19 pandemic has only reemphasized the need for mortality protection . Public pension replacement rates are declining and healthcare expenditures are rising — trends also accelerated by the COVID-19 crisis . Economic and demographic trends will also offer tailwinds . The global middle class is rapidly expanding , bringing higher incomes , growing financial wealth , and heightened risks to manage . By 2030 , all baby boomers will be age 65 or older , 1 and many are expected to outlive their retirement savings . 2
We believe the life insurance industry faces a pivotal , dual opportunity : the chance to fulfill growing customer needs while returning to profitability and growth . To achieve these goals , we expect winning life insurance companies to outperform in three areas in the decade ahead :
1 Personalize the customer experience 2 Flexible product solutions 3 Reinvent skills and capabilities
Shifting to continuous underwriting flips the underwriting approach on its head .