Customers expect advanced technology from insurance companies but not many insurers can deliver, according to
The report was conducted by Capgemini Research Institute and LIMRA. The survey includes insights from 6,176 people and 200 senior insurance executives. It draws from the 2025 Global Voice of the Customer Survey, the 2025 Global Insurance Executives Interviews and the 2025 Global Macroeconomic Forecasts.
The study shows respondents under 40 years old are delaying or skipping traditional triggers for purchasing life insurance. One in four consumers turn down life insurance policies because of confusing processes and jargon.
Luca Russignan, head of insurance, Capgemini Research Institute for Financial Services, told Digital Insurance via email: "What struck me about this year's findings was the fascinating paradox we uncovered. We have 68% of under-40s telling us life insurance is essential for their financial future: they get it, they understand the need. But when we dig deeper, 32% say it doesn't align with their current life stage — which really means it's not designed with them in mind. What's driving this disconnect? We're still selling to their parents' generation, not to theirs: 63% of under-40s have no immediate marriage plans, and 84% aren't planning kids – the traditional life insurance triggers just aren't there anymore. As a result, life insurance's share of individual investment wallets has dropped 23% in fifteen years while equities jumped 31%."
The report reveals 59% of those under 40 respondents want direct digital engagement, but 31% of the insurers surveyed offer those platforms. Seventy-seven percent of consumers expect comprehensive, data-driven recommendations, but only 16% of insurers that participated in the survey provide them.
More insights:
- Thirty-three percent of respondents said competition from a broader range of firms is a barrier to reaching people under 40 years old.
- Forty-seven percent of insurers are planning to innovate distribution models.
