The life and pensions sector is transforming at an accelerating pace. Consumers are willing to engage with only the best digital experiences, with mobile increasingly the primary point of access. Coupled to this is the need to reinvent and simplify business models to be highly digital, fully automated and efficient.
The cost of living crisis, high inflation, couple with rising interest rates and low wage growth, is putting pressure on personal finances especially for the most financially vulnerable. Meanwhile, the deep and sustained equity marker sell-off material weakens pension and other savings balances which has led to some investors withdrawing assets. Pensions and life insurance contributions may be reduced or stopped as consumers seeks ways to meet their financial commitments.
Firms cannot afford to stand still. We see a number of firms re-evaluating their purpose and strategy in this context, and driving initiatives to address multiple imperatives. These include regulatory requirements, the digitalization of customer, advisor and colleague journeys, the implementation of new technologies and API integration, cloud migration and new data platforms for matching, pricing, reporting and ESG purposes. Legacy systems modernization as part of this is essential.