Life insurance is facing a relevance challenge as 47% of consumers participating in a global survey say they are considering purchasing a life insurance policy, yet more than 40% of those feel confused, uncertain, or unconvinced with the information they find. As a result, one in four drop out of the purchase journey before completion according to the World Life Insurance Report 2027.
The 64-page “The relevance premium: How consumer centricity unlocks growth” report released on 10 September 2026 reveals that technical language (37%), affordability concerns (35%), and lack of relevance to life stage (25%) rank among top three barriers to purchase life insurance.
The World Life Insurance Report 2027, researched jointly by the Capgemini Research Institute and LIMRA, found that half of consumers plan to use generative AI tools to discover and compare life insurance products. Nearly 40% of policyholders rarely hear from their life insurer after purchasing a policy, while half of those who discontinue coverage do so within the first three years.
The report, which surveyed more than 6,100 consumers worldwide, discovered that younger people are especially prone to this pattern of feeling confused, being uncertain, or unconvinced with the information they find. While 54% of 18-to-40-year-olds consider buying life insurance, they are also more likely to abandon the process (28%) before completing it.
The findings point out that best-in-class life insurers, representing 10% of the industry, achieve 41% higher revenue growth and 12% lower lapse rates by combining consumer-led strategies with intelligence-powered operations.
Consumers do embrace AI tools but still lean on human guidance. While more than half (51%) of consumers plan to use generative AI tools to research and compare life insurance products, human guidance continues to play a pivotal role in decision-making. Two-thirds of consumers prefer working with a human advisor when finalising coverage decisions, and 85% want advisor interaction at some point during their journey, whether to validate research, answer questions, or provide reassurance.
Consumers increasingly expect advisors to understand their circumstances and experiences. Half of respondents say they prefer working with advisors who share similar demographic characteristics, believing they are better equipped to relate to their needs and life situations. However, fewer than a quarter of insurers can match advisors in this way.
Capgemini Global Leader for Life Insurance, Annuities and Benefits Sector Samantha Chow said, “Consumers have high standards for their personal financial services products. When it comes to life insurance, they recognise its importance, but complexity at the point of purchase and post-sale silence undermine policy ownership – putting customer relationships at risk and triggering exits that cost the industry billions.”
LIMRA Research Senior Vice President Bryan Hodgens said, “We need to bring consumers into the fold and guide them through the entire process, keeping it simple, embracing tools like AI, but never losing sight of how essential human advisors are. When insurers nurture the relationship with ongoing support, consumers respond.”