Capgemini’s latest report reveals that while consumer interest in life insurance remains high, industry-wide challenges in communication and engagement are hindering growth. Top performers leverage clear messaging and advanced data tools, driving higher revenue and lower lapse rates.
Capgemini says the life insurance industry is struggling to persuade many consumers that its products are clear, relevant and worth the cost, even as interest in cover remains substantial. In the World Life Insurance Report 2027, the consultancy said 47% of consumers are considering buying life insurance, but more than 40% of that group feel confused, uncertain or unconvinced by the information they find, and one in four abandons the purchase journey before completing it. The report, produced with LIMRA and based on surveys of more than 6,100 consumers across 18 countries, suggests the problem is not a lack of demand but a failure to explain value in simple terms.
The study points to three main barriers: technical language, cited by 37% of respondents; affordability concerns, cited by 35%; and a sense that the product does not fit their stage of life, cited by 25%. Capgemini said younger adults are especially likely to drift away, with 54% of people aged 18 to 40 considering a policy but 28% abandoning the process before completion. The report also says 51% of consumers plan to use generative AI tools to research and compare products, but human advice still matters: two-thirds prefer to finalise coverage with an adviser, and 85% want some kind of human interaction during the process.
Post-sale engagement appears to be another weak point. According to Capgemini, 36% of policyholders rarely or never hear from their insurer after buying a policy, while half of those who lapse do so within the first three years. The report says 48% would be more likely to stay with a provider that offered proactive guidance before, during and after purchase. It also warns that group life cover, often obtained through an employer, can create a false sense of security: more than half of employees said they feel confident in their workplace cover, yet many have never formally checked whether it meets their needs.
Against that backdrop, the report highlights a small group of better performers that appear to be turning consumer interest into growth. Capgemini said only 18% of insurers have a unified strategy and customer journey plan, but the top 10% are using clearer messaging, more tailored advice and more advanced data systems to stay closer to customers. Those insurers are nearly twice as likely to adapt advice to life stage, more than twice as likely to match customers with advisers by characteristics such as language or cultural background, and almost three times as likely to combine consumer data into a single view and use autonomous AI tools. Capgemini said those practices are associated with 41% higher revenue growth over three years and 12% lower lapse rates than mainstream peers.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
