Dr. Christine Darbelley
The expectations of current and future generations regarding work and personal well-being have profoundly evolved, influenced by changes in social values, lifestyles, and professional aspirations. Insurance products, whether life or non-life, must adapt to this new reality. How could AI revolutionize these areas?
More Work or More Leisure?
Pension schemes, retirement, disability, illness, death, longevity, professional training, parental leave, part-time work, career changes, professional retraining, sporting challenges, travelling the world, etc. Insurers have always offered solutions to address the financial losses associated with all possible life paths. However, the traditional career model (working for 30 to 40 years before retiring at a fixed age) is no longer as relevant for younger generations. Should contribution mechanisms be adapted solely to working periods? How can insurers account for sabbatical periods in their retirement planning solutions?
In summary, can insurers improve pension planning for all lifestyle choices?
Living for Work or for Family?
The line between professional and personal life is blurring, particularly with the rise of remote work and more flexible jobs. Employees who are also policyholders are increasingly looking to integrate their work with family life, leisure activities, and mental health. How can insurers create reserves for future claims in such an intangible context?
In summary, can insurers improve the general well-being of individuals?
Working Until Death?
Old age represents a kind of transition into a new life with new desires to explore, such as engaging in associations or volunteering. By enabling a person to gradually reduce their activity while receiving partial income, insurance could reinvent itself around concepts such as phased retirement. This type of product could help policyholders transition smoothly between their active life, less active life, and retirement.
In summary, can insurers improve natural transitions associated with ageing?
Neglecting Well-Being?
To be effective at work, younger generations strive to balance their mental and physical health with increasingly demanding professional requirements. Insurers could offer products that cover not only medical care but also wellness services, such as mental health programes, online consultations, gym memberships, or sleep therapy. These products might include professional retraining insurance, coverage for periods of incapacity to work (e.g., due to burnout), or solutions to fund lifelong continuous training. How can such benefits be integrated into the current range of offerings?
In summary, can insurers improve the state of health of policyholders to extend contribution periods?
Is Longevity an Asset?
In a context where life expectancy is increasing, younger generations often worry about the future costs associated with dependency and longevity. Insurers could develop products to cover risks related to ageing, such as flexible long-term care insurance that evolves with needs, or products allowing savings to be built up for future healthcare expenses. How can insurers address the potentially exorbitant future costs of dependency?
In summary, can insurers improve quality of life in old age?
Can Risks Be Transferred to Other Policyholders?
These abrupt societal changes carry enormous costs, sometimes highly uncertain ones. To mitigate the risk of bankruptcy for insurance companies, products could be created to transfer risks to other policyholders who choose to bet on life, similar to life annuity property purchases. How can insurers spread risks across their entire pool of policyholders?
In summary, can insurers improve their finances by transferring risks?
Will Digitalization Solve Everything?
Younger generations are accustomed to a seamless and personalized digital experience. Insurance products must adapt to this demand by leveraging technology to simplify access to insurance, policy management, and customer interactions. For example, usage-based insurance, such as car insurance based on actual driving, or health coverage informed by health data collected via mobile phones. How can insurers integrate such personal data into interactive digital platforms to manage savings, claims, or coverage options?
In summary, can insurers enhance platforms for policyholders to manage their insurance contracts?
If you believe insurers can succeed in attracting future generations with insurance products tailored to their flexible lifestyles, desire for personalization, and values, contact our BSL team for more information.
Dr. Christine Darbelley
Dr. Christine Darbellay joined Business School Lausanne at the end of summer 2023 where she teaches Business Mathematics and Calculus.