The life insurance industry is at a crossroads. Long-term shifts in demographics, mounting economic pressures, and rapidly evolving customer expectations are rewriting the rules of the game. Over the last decade and a half, life insurance has steadily lost ground in personal investment portfolios—its share has slipped by 23%. Looking ahead, growth looks modest at best, with global life insurance premiums
projected to crawl forward at just 0.9% CAGR through 2040.
Capgemini’s World Life Insurance Report 2026 dives deep into this transformation. Drawing insights from more than 6,000 under-40 policyholders and 200 senior executives across 18 countries in the Americas, Europe, and Asia-Pacific—along with expert macroeconomic forecasting—the report paints a clear picture: the traditional life insurance model is out of step with the next generation.
The real growth potential lies not in coverage for the “what-ifs” of tomorrow, but in solutions that add meaningful value today. For younger customers—tech-savvy, financially ambitious, and relatively lowrisk—“insurance for living” is the key. This group wants benefits that enhance their daily lives, not just a payout decades down the line.
To capture this audience and fuel sustainable growth, the report highlights three critical imperatives:
Compete in a new arena: Keep pace with fintechs and wellness platforms that are already delivering the immediacy and control younger consumers crave.
Reimagine products as solutions: Design offerings with built-in living benefits, flexibility, and relevance for both individual and group markets.
Transform distribution into engagement: Embrace hybrid advisory models that blend digital convenience with the personal touch of human expertise.
The message is clear: insurers who act first will set the pace. By aligning with under-40 expectations, strengthening organizational agility, and carving out real differentiation, they can not only win back market share but also secure loyalty from a generation just beginning its wealth journey.
– Indranil Sarkar
