Key front office trends and their implications for the life insurance industry

The life insurance industry is witnessing shifting trends in front office, policy administration, and claims—the three core functions of the insurance value chain. In this paper, Capgemini identifies key emerging front office trends in the life insurance industry where there has been a gradual change in consumer preferences regarding products, sales channels, and customer service. While the influence of traditional sources such as agents and brokers has declined, non-traditional information sources (such as internet, ease of buying, and recommendation from acquaintances) have emerged as a significant influences on insurance consumers.

A significant new distribution channel, Bancassurance, offers better cost efficiency than traditional channels such as agents and brokers and provides an opportunity to expand the customer base. A range of new technologies such as Software as a Service (SaaS) and service oriented architecture (SOA) platforms have emerged to enable insurance companies to offer innovative new features, and illustration software has been a key element in the insurance business workflow, delivering functionality that enables agents to create price quotes and illustrate the benefits of insurance products to their customers. In this paper, Capgemini explores these emerging trends and discusses implications for life insurers.