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Life insurers struggle to convert consumer interest into sales
A joint Capgemini Research Institute and LIMRA survey found 40% of consumers abandon the process confused or unconvinced, and the gap is most pronounced among younger shoppers.
Nearly half of consumers globally say they are considering buying life insurance, but more than 40% walk away from the purchase process confused or unconvinced, according to a joint report from the Capgemini Research Institute and LIMRA, with findings tied to advisor matching and follow-up.
The World Life Insurance Report 2027, which surveyed 6,175 consumers and 198 insurance executives across 18 global markets, frames the problem as a conversion gap rather than weak demand, with drop-off beginning during the initial research phase.
In the survey, 38% of consumers said life insurance content felt too sales-focused, and 37% said it was too technical or jargon-heavy, while one in four consumers dropped out of the journey before completing it. The report also notes that the drop-out rate rises to 28% for consumers aged 18 to 40.
Consumers, the report says, want human involvement when finalizing coverage, even as they expect to use generative AI for product research. Two-thirds prefer working with a human advisor, 85% want advisor interaction at some point, and the report highlights that fewer than a quarter of carriers can currently match clients to advisors based on shared demographic characteristics.