The Growing Protection Gap in European Insurance—and How to Close It

Until recently, the need for life protection coverage in Europe was relatively limited, with households supported by strong public social security systems. But this is changing. As governments scale back benefits and transfer more financial responsibility to individuals, European households face widening coverage gaps across multiple areas of life insurance—including retirement savings and protection relating to premature death, disability, and critical illness. At the same time, demographic pressures and rising consumer expectations are amplifying the demand for more personalized and accessible coverage.

Fortunately, longstanding barriers to customer engagement have eased, opening new opportunities for European insurers to close the protection gap. However, meeting the moment will require bold innovation. Insurers must rethink offerings, channels, and engagement models to reflect how people are living, working, and aging today.

European insurers can draw lessons from innovations pioneered in North America and the Asia-Pacific region. In these markets, leading insurers are engaging customers digitally, offering wellness solutions, and establishing integrated ecosystems and embedded insurance models. It’s time for the European insurers to adopt a similar approach that aligns with modern lifestyles and the rising need for protection.

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