Future Distribution of Life Insurance

Andreas Svoboda


Digital disruption came with major changes and transitions, especially in service industry. Online purchases and transactions, customer service through digital platforms and new models like sharing economy are but some of the major changes in the market. Specifically, more focus is on the insurance sector, especially life and non-life insurance. The pandemic has seen the need for increased focus on insurance cover while also brought the challenge of online insurance service distribution. The aim of this article is to explore the changing insurance distribution model, outlining those who are in control, whether agents or brokers, firms or intermediaries. Implications for such change in ownership are also addressed and specific country scenario of Belgium is extensively evaluated to affirm the industry changes regarding the distribution of insurance. The main finding is that the contemporary distribution model is shifting towards digital platforms. The changing society, especially increased life expectancy, technology prospects like artificial intelligence, changes in connectivity and consumer taste and preferences have driven the insurance distribution towards the online platform. This calls for insurers to focus on building partnerships within their different ecosystems, encouraging agents to work as teams and ensure that they have incorporated a hybrid or multi-channel distribution model. This is because the traditional face-to-face meeting still find relevance despite the changing consumer preferences towards the online or digital platform.

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This work is licensed under a Creative Commons Attribution 4.0 International License.