Retirement planning now involves more individual decisions about inheritance and long-term care.
Life insurers face growing competition as more people take responsibility for managing their retirement savings, increasing demand for insurance products and financial advice.
According to a Swiss Re Institute report released on 8 October, there have been changes in pension systems that are prompting individuals to make their own decisions about retirement income, inheritance and long-term care, rather than relying on guaranteed lifetime payments.
The shift is changing how life insurance and long-term care products are distributed, with banks, financial advisers and other intermediaries taking a larger role in reaching customers before retirement.
According to Swiss Re Institute, three private equity-backed US insurance intermediary groups completed more than 300 publicly announced acquisitions of independent marketing organisations, field agencies and advisory groups between 2017 and 2025.
In one of the largest US pension plans, more than half of retirees chose to withdraw and manage their funds independently in 2018, compared with 10% in 2000.
In the UK, 36% of pension assets accessed by retirees in 2024 were withdrawn as cash rather than converted into lifelong income.
The consolidation has created larger distribution groups with greater capacity to invest in technology and adviser support, potentially increasing their influence over insurance product sales.
For life insurers, the report identified the years before retirement as an important period for reaching customers, particularly as long-term care insurance generally needs to be purchased years before care is required.
Insurers are also investing in artificial intelligence (AI) and digital services to improve insurance distribution and customer support.
Swiss Re Institute reviewed 197 publicly reported AI and technology initiatives by major life insurers and selected intermediaries, finding that approximately 70% focused on customer-facing activities, including purchasing insurance, policy servicing and claims processing.
However, demand for human support remains. A survey of nearly 3,000 consumers across seven countries found that almost two-thirds preferred human interaction for complex transactions, including insurance claims.