5 Trends in Life and Health Insurance That Will Grow Throughout 2022


Here are the biggest trends we’re seeing in the life and health insurance sectors, including embedded insurance and supplemental benefits.

5 Trends in Life and Health Insurance That Will Grow Throughout 2022

The 2022 PIMA Summer Insights Conference was full of information. We’re living and working in a time of extremes; digital-first thinking and post-pandemic recovery are just a few of the challenges confronting the insurance industry right now.

In this tumultuous year — as natural, economic, and health crises rattle on around us — trends can come and go too quickly to even spot, but there are some trends that seem to stick out more than others. Presenters from both Milliman and Majesco showed us what to look out for in the coming months.

How are customers acting in this change-heavy era? How are plans and policies shifting to make room for new needs? Here are some of the biggest trends we’re seeing, especially in the life and health insurance sectors:

1. An opportunity for a multi-channel approach.

What we can see from 2022’s trends is that channel usage hasn’t changed all that much; affinity — a business-to-business-to-consumer model — dominates most health and life insurance channels. However, other channels are catching up. Channel use also varies dramatically by product.

So, more basic products, such as simple life and health plans, are being offered across many channels. On the other hand, more complex or niche products are being reserved for particular channels. However, many products could actually soon infiltrate channels they’re not currently using.

2. The growth of embedded insurance.

We’re seeing a rise in “soft embedded” life and health insurance products, allowing customers to opt in at the point of purchase. If you’re not leveraging embedded insurance, your competitors probably are.

An embedded approach caters to digital-minded generations, and customers respond to both hard and soft embedded methods. Customers still want to form relationships with agents and brokers, but if they can go through trusted online processes and make informed decisions in the end, that works, too.

3. Expanding coverage for mental health.

The definition of healthcare has grown in scope. Health insurance policies that used to deal, at least on the surface, with physical health conditions and scenarios are now expanding to offer mental health parity.

However, this inclusion is not yet ubiquitous across categories. Stigma and misinformation persist. Therefore, the next challenge for industry leaders will be to find ways to cover the various conditions and incidents that impact people with mental health needs.

4. A focus on fertility.

Customers are increasingly choosing or needing nontraditional family planning. They are forming families in new ways at different stages of their lives, and they need more flexible insurance offerings.

Today, people experience difficulty gaining access to insurance benefits plans that work for their needs. Major medical insurance doesn’t usually cover infertility treatments, is prohibitive in terms of cost, or has limitations based on partners and perceived needs. Products and supplemental benefits that help people build the modern family are well needed.

5. More recognition of long-term care.

We live in aging populations and have spent the last two years getting more involved in each other’s care. More of us are caregivers to some extent (an estimated 53 million people in the U.S. are caregivers, in fact), even if not officially recognized as such. Insurance benefits plans that cater to long-term care and caregiving support are sorely needed. As a result, this area is appearing as an emerging market.

These are just a selection of the customer and product trends we’re seeing in life, annuity, and health insurance. Pay attention — so much is changing around us all the time, but some of that change is beginning to stick.

To learn more about up-and-coming trends in the insurance and financial services industry, become a PIMA member today or sign up to attend our next Insights Conference.

Published on September, 6, 2022.

PIMA® (Professional Insurance Marketing Association®) is a member-driven trade association focused exclusively on the group-sponsored benefits market.