Aspects of the life insurance industry have remained constant for years – and so have premiums. Traditional savings products have taken a huge hit in terms of attractiveness because low interest-rates prevail. Meanwhile, the risk landscape is shifting, and insurers need to align better with the emerging business environment, manage changing customer preferences, and improve operational efficiencies. Within today’s scenario, industry players are undertaking tactical and strategic shifts in attempts to manage unpredictable market dynamics. Insurers must develop alternative products to breathe new life into policies and leverage emerging technologies (artificial intelligence (AI), analytics, and blockchain) to improve efficiency, agility, flexibility, and customer-centricity. Read Top Trends in Life Insurance: 2020 for a look at the innovative steps future-focused insurers are considering to meet industry challenges and opportunities.

1. Top Trends in Life
Insurance: 2020
November 2019
Link: https://www.capgemini.com/top-
trends-in-2020/

2. 2© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
Life insurers are responding to shifting market dynamics
Enhancing
Operational
Efficiency
Evolving
Customer
Preference
Changing
Business
Environment
Life insurers are exploring a variety of blockchain use cases and long-term benefitsTREND 7
Epigenetics may pave the way for personalized life insurance premiums and more accurate underwritingTREND 8
Insurers enhance underwriting process by leveraging analytics and AITREND 6
Life insurers are exploring digital-only offerings to improve operational efficiencies
Insurers reduce customers’ purchase cycle to improve customer experience
TREND 4
TREND 5
Ecosystem collaboration opens avenues for insurers to serve customers betterTREND 3
Insurers explore wellness initiatives to monitor, manage, and improve policyholders’ healthTREND 1
Life insurers begin to provide flexible offerings to emerging customer segmentsTREND 2
Emerging
Risk
Landscape
Top Trends in Life Insurance for 2020 by Capgemini

3. 3© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
3© Capgemini 2019. All rights reserved |
Payer Preventer
Partner
Customer
Customer data
Value-added
services
As industry players evolve from payer to partner and preventer, life insurance companies
are assuming a greater role in customers’ lives, not just paying claims upon illness or death
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Trend 1: Insurers explore wellness initiatives to monitor, manage, and improve
policyholders’ health

4. 4© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
Booming gig
economy
growth
Shifting risk
exposure of the
non-salaried
segment
Tremendous
coverage gap in
life insurance
for millennials
Insurers are exploring ways to cater to underserved populations such as gig economy
workers, millennials, and even much older customers via hybrid and combination products
Trend 2: Life insurers begin to provide flexible
offerings to emerging customer segments
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
4© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019

5. 5© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
5© Capgemini 2019. All rights reserved |
Drivers of
expansion
through
collaboration
Strong distribution network of other players
APIs enable direct plug-in with partners
The need to cover underserved segments
Emergence of startups with specialized capabilities
Life insurers are leveraging the competencies and reach of ecosystem partners to create
opportunities and attract more customers
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Trend 3: Ecosystem collaboration opens avenues for insurers to serve customers better

6. 6© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
Swift policy issuance
Better operational efficiency
Significant cost savings
Better customer experience
Insurers are launching digital-only products to speed up the quote-to-issue process and
bring in cost efficiencies in customer service
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Trend 4: Life insurers are exploring digital-only offerings to improve operational
efficiencies

7. 7© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
Life insurers are leveraging digital platforms and technologies to reduce customer purchase
cycles – drastically, in some cases – to create a relatively hassle-free customer experience
7© Capgemini 2019. All rights reserved |
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Trend 5: Insurers reduce customers’ purchase cycle to improve customer experience

8. 8© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
8© Capgemini 2019. All rights reserved |
Advances in data capturing tools, analytical techniques, and AI algorithms are making
underwriting automation and improvement possible
Customers InsurersAccurate premium
price
Faster and more
convenient policy
acquisition
Better customer
experience
Less expensive
risk assessment
Accelerate
customer
onboarding
Reduction in
manual errors
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Trend 6: Insurers leverage analytics and AI to enhance the underwriting process

9. 9© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
9© Capgemini 2019. All rights reserved |
Blockchain-based systems have the potential to streamline processes, reduce costs,
and improve customer experience
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Trend 7: Life insurers are exploring a variety of blockchain use cases and long-term
benefits

10. 10© Capgemini 2019. All rights reserved |Life Insurance Trends 2020 | November 2019
Source: Capgemini Financial Services Analysis, 2019
Invasive medical tests,
complicated paperwork
and long questionnaires
Insurers are exploring epigenetics as an alternative data source to enhance product
personalization and improve underwriting
Long waiting periods
associated with
traditional methods
Need for personalized
innovative products
Higher premiums for
instant insurance
without fees
Top Trends in Life Insurance for 2020 by Capgemini Risk
Landscape
Operational
Efficiency
Business
Environment
Customer
Preference
Life Insurance Trends 2020 | November 2019
Trend 8: Epigenetics may pave the way for personalized life insurance premiums and
more accurate underwriting
10© Capgemini 2019. All rights reserved |

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