The global life insurance market is experiencing a gradual transformation in distribution channels, with independent intermediaries and consultants gaining prominence in reaching clients. This shift is driven by the increasing complexity of products and growing individual needs related to retirement, wealth management, and protection in later life stages.
A recent report by the Swiss Re Institute, titled "Life Insurance Distribution: Competing for Client Access in an Advisory-Driven Market," highlights that life insurance distribution evolves according to local regulations and client needs, rather than moving towards a uniform global model. The report, which was obtained by Almal News, provides insights into the changing landscape of life insurance distribution.
According to the report, intermediaries represent more than half of life insurance premiums in most studied markets, with a growing role for multi-firm consultants and intermediaries in markets where products require comparison and personalized advice. This trend is driven by the need for clients to navigate complex products and make informed decisions about their financial futures.
The report also notes that differences in pension systems, product design, regulatory frameworks, and consumer preferences lead to continued variation in distribution channel mixes across markets. While bank insurance channels and tied agents remain strong in some markets, the growth of financial advisory services is a structural trend in several regions, driven by changing client needs and product evolution.
The Swiss Re Institute believes that competition in life insurance distribution is increasingly focused on the ability to access clients and build long-term relationships, alongside the importance of streamlined underwriting processes, easy procedures, and product design in enhancing insurers' ability to reach distribution channels. This shift is expected to continue, with independent intermediaries and consultants playing a key role.
The growing importance of independent intermediaries and consultants is driven by their ability to offer multiple solutions from different companies, providing clients with a broader range of options and more personalized advice. This trend is expected to continue, with the demand for independent advice and guidance driving growth in the life insurance market.
Overall, the life insurance distribution landscape is evolving, with independent intermediaries and consultants increasingly important in reaching clients and providing personalized advice. As the market continues to grow and evolve, it is likely that these channels will play an increasingly significant role in the distribution of life insurance products.
Key points
- Independent intermediaries and consultants are increasingly important in life insurance distribution.
- The growth of financial advisory services is a structural trend in several regions.
- Competition in life insurance distribution is focused on client access and long-term relationships.
