Insurers urged to modernise amidst looming talent shortages: Bain & Co.

Life insurers are struggling to stay relevant, especially amongst younger consumers.

Whilst strong capital and past tailwinds like rate hikes in property & casualty (P&C) and interest-driven annuity sales have supported growth, these trends are waning, according to Bain & Company. 

Rising premiums, natural disasters, and cyber threats are straining profitability and accessibility, creating large protection gaps in property and life coverage, said Bain & Co.’s Bridging the Protection Gap: Affordability, Access, and Risk Prevention report.

In P&C, affordability is becoming a major issue, with some regions facing "insurance deserts." 

Life insurers are struggling to stay relevant, especially amongst younger consumers, due to shifting savings habits and demographic changes. 

Meanwhile, emerging risks like climate change, cyberattacks, and autonomous vehicles demand new products and partnerships, including public-private risk-sharing.

Digital engagement, embedded insurance, and AI are transforming how insurers operate and connect with customers. 

At the same time, the industry faces a looming talent gap, with many seasoned professionals nearing retirement.

To stay competitive, insurers must modernise operations, expand prevention services, adopt alternative capital strategies, and target underserved markets. 

Those that adapt quickly will be best positioned for sustainable growth and stronger societal impact in a riskier world.