Cost pressure in the life insurance industry is becoming ever more dire. Transparency brought about by regulations, the rise of digital platforms coupled with the low interest rate environment are jeopardizing the life insurance industry’s value proposition. At current rates, most insurers are unable to pay back even the premiums that have been paid in and are simply bleeding money. This paper shows five actions Life insurers can take to sustainably reduce costs and discusses more radical options to reshape the Life Insurance Business.
Taking courageous action on cost in life insurance
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