LIFE INSURANCE MARKET TRANSFORMATION: CURRENT CHALLENGES AND GROWTH PROSPECTS
Abstract
This article delves into the transformative processes currently reshaping the life insurance market, driven by the confluence of global economic shifts, technological advancements, and evolving societal dynamics. The primary objective of this article is to analyze the key transformational processes occurring within the life insurance market in response to contemporary challenges. The research aims to identify the critical issues influencing market development and to outline potential pathways for sustainable growth in the industry. The study was conducted using empirical (observation, description), theoretical (grouping, synthesis, abstraction) and statistical research methods. The article argues that the life insurance market is undergoing a paradigm shift, driven by rapid technological progress, evolving consumer expectations, and the emergence of innovative business models. Traditionally characterized by complex documentation, lengthy underwriting processes, and agent-driven sales, the industry is now being reshaped by digital technologies, InsurTech startups, and data-driven solutions that make life insurance more accessible, flexible, and personalized. The article also examines the increasing importance of ethical investing and ESG principles in the insurance industry. Another major trend is the shift towards embedded insurance. This innovation expands coverage to underserved populations, enhancing financial inclusion. The study concludes that the life insurance market is undergoing a paradigm shift, driven by digital transformation, evolving consumer expectations, and technological advancements. Insurers must embrace innovation, leverage technology, and prioritize customer needs to thrive in this dynamic landscape. The increasing customisation and flexibility of life insurance products is fuelling competition in a consumer-driven market. Traditional life insurance models, which were often rigid and difficult to adapt, are being replaced by dynamic policies that emphasise customer choice. The results of the study are of practical importance and can be used in the activities of insurance companies, national regulators, and self-regulatory organizations.
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Labini S.S., Biase P., D’Apolito E. (2025). Sustainability strategy and financial performance in the insurance company. International Review of Economics & Finance, vol. 98. Available at: https://www.sciencedirect.com/science/article/pii/S1059056025000875
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Reis M. (2020). The Future of Industries: How Personalization of Insurance Policies Using Artificial Intelligence Will Disrupt the Insurance Status-Quo: Dissertation. Available at: https://repositorio.ucp.pt/bitstream/10400.14/29707/1/152118165_Marina%20Reis_DPDFA.pdf
Bhatia S. (2024). Embedded Insurance/Microinsurance in Financial Services: Key to Financial Inclusion. IIFT International Business and Management Review Journal. DOI: https://doi.org/10.1177/jiift.231220778
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