This report identifies key demand-side trends in the life and annuities (L&A) insurance industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the L&A insurance industry based on Avasant’s assessment.
Why read this Market Insights?
The life and annuities (L&A) insurance industry is adapting to rising demand for life insurance and annuity products by accelerating digital transformation. Insurers are introducing tools to empower advisors, enhance engagement, and deliver personalized experiences. To meet evolving expectations, firms are embedding retirement planning and holistic financial wellness features into digital platforms. While digital maturity varies globally, insurers are modernizing systems, consolidating vendors, and leveraging AI-driven capabilities to strengthen underwriting and advisory processes. At the same time, L&A insurers are forging strategic partnerships with service providers to fast-track digital transformation, ensuring innovation and customer-centricity remain central to growth strategies.
The Life and Annuities Insurance Digital Services 2025 Market Insights™ aids enterprises in the L&A insurance sector in identifying important market trends and challenges for any digital project they participate in.
Methodology
The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.
Table of contents
About the report (Page 3)
Executive summary (Pages 6–10)
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- Definition and scope of life and annuities insurance digital services
- Key drivers and enterprise response
- In this report’s companion study, Life and Annuities Insurance Digital Services 2025 RadarView, 25 service providers were recognized
Life and annuities insurance state of the market (Pages 11–17)
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- As demand for life insurance and annuity products rises, L&A insurance firms are introducing digital tools to empower their financial advisors to boost sales.
- L&A insurers are embedding retirement planning and holistic financial wellness tools into digital platforms to boost engagement and meet consumer demand.
- Only 13% of Forbes Global 2000 insurers have set up GCCs in India, leaving substantial untapped potential for new centers.
- Evolving customer preferences for speed, guidance, and transparency are pushing L&A insurers to reinvent the policyholder experience with digital agents and tools.
- Despite varying digital maturity worldwide, L&A insurers are prioritizing annuity and advisor portals, vendor consolidation, Gen AI-based underwriting, and retirement products.
- In CY 2024, 75% of insurers invested over 5% of their digital tech budget in Gen AI/agentic AI to drive efficiency and productivity across the value chain.
Key contacts (Page 18)
Read the Research Byte based on this report. Please refer to Avasant’s Life and Annuities Insurance Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.