Capgemini and LIMRA report shows younger generations demand living benefits and digital-first life insurance solutions

Capgemini and LIMRA report shows younger generations demand living benefits and digital-first life insurance solutions

(IN BRIEF) Capgemini and LIMRA’s World Life Insurance Report 2026 reveals that while 68% of adults under 40 view life insurance as vital for financial security, many are deterred by outdated offerings, complex processes, and the absence of benefits they can use during their lifetime. Younger consumers want wellness rewards, emergency support, and coverage that reflects their life journeys, as traditional triggers such as marriage and children are delayed. Despite strong demand for digital platforms and personalized recommendations, most insurers lack the technology to deliver them at scale. The report urges insurers to innovate with living benefits, empower advisors with AI tools, and forge partnerships to integrate life insurance into everyday experiences.

(PRESS RELEASE) PARIS, 15-Sep-2025 — /EuropaWire/ — The Capgemini Research Institute and LIMRA have released the World Life Insurance Report 2026, highlighting a growing disconnect between traditional life insurance offerings and the expectations of consumers under 40. While 68% of younger adults acknowledge that life insurance is essential for financial security, many still hesitate to buy policies due to misalignment with their lifestyles, the high cost of premiums, and the lack of tangible benefits they can use during their lifetime.

The study, based on a survey of more than 6,100 individuals aged 18–39 across 18 global markets, reveals that younger generations want “living benefits” such as wellness incentives, financial assistance in emergencies, or coverage for fertility treatments. Yet 25% of respondents reported rejecting life insurance altogether because of confusing jargon and complicated processes that make products difficult to understand and manage.

One key finding is that many traditional triggers for purchasing life insurance are being delayed or skipped entirely. With 63% of under-40s having no immediate marriage plans and 84% having no near-term plans for children, the usual reasons for taking out coverage are less relevant. At the same time, the great wealth transfer expected over the next 15–20 years is reshaping financial priorities, with millennials and Gen Z anticipating inheritances averaging $106,000 per person. Notably, 40% of these younger adults view life insurance and annuities as a major destination for this wealth, ranking third behind stocks and savings.

Samantha Chow, Global Leader for Life Insurance, Annuities and Benefits Sector at Capgemini, said: “The industry cannot rely solely on traditional death protection to remain relevant. Younger consumers want life insurance that delivers real value throughout their lifetime. Carriers that innovate and communicate their benefits clearly will be well-positioned to engage the next generation of policyholders.”

The report also underscores a mismatch between demand for digital solutions and insurer capabilities. While 59% of under-40 consumers prefer direct digital engagement, only 31% of carriers provide such platforms. Similarly, 77% of consumers expect data-driven recommendations tailored to their needs, but just 16% of insurers currently offer these at scale due to outdated systems.

Bryan Hodgens, Senior Vice President and Head of LIMRA Research, added: “Price misconceptions and competing financial priorities often discourage younger consumers from buying life insurance. Carriers must rethink how they present their products, showing affordability and adaptability to current needs while building long-term trust.”

Executives surveyed for the report cite rising longevity, delayed life milestones, and economic uncertainty as key factors shaping their long-term strategies. However, the industry still faces hurdles in offering portable coverage, with only 19% of insurers providing policies that remain intact when policyholders change jobs—despite nearly half of employees wanting such flexibility.

The World Life Insurance Report 2026 recommends insurers transform their business across three areas:

• Product innovation – creating flexible solutions with built-in living benefits and simplified processes.

• Advisor empowerment – leveraging AI-driven tools and new compensation models to attract younger advisors and deliver personalized guidance.

• Strategic partnerships – integrating insurance into everyday experiences by collaborating with banks, wellness platforms, and HR providers.

By evolving offerings to meet new expectations, insurers can move from traditional protection to becoming lifelong partners in financial wellbeing.

Media Contact:

Sam Connatty
Group Press Office
sam.connatty@capgemini.com

SOURCE: Capgemini