1、Bridging the Protection Gap:Affordability,Access,and Risk PreventionWith many customers finding P&C coverage too expensive and life coverage not relevant,insurers have to evolve their products,channels,and business modelsBy Sean ONeill,Andrew Schwedel,Dan Jones,and Tanja Brettel Insurance Industry O

2、utlookCopyright 2025 Bain&Company,Inc.All rights reserved.1Bridging the Protection Gap:Affordability,Access,Risk PreventionAt a Glance Recent rate-driven growth is unsustainable,as insurers contend with unaffordable property premiums and declining relevance of life insurance.The rise in natural disa

3、sters,cyberattacks,and novel transportation demands innovative models,with a stronger focus on risk prevention.In parallel,AI and unstructured data are revolutionizing the industry,but harnessing the technologies will require new skills and roles.To manage large-scale risks,mitigate disasters,and im

4、prove returns,insurers should expand capital sources and government collaboration.Insurance companies find themselves at an inflection point.The industry weathered the Covid-19 pandemic and aftermath fairly well and,over the past couple of years,was bolstered by unsustainable tailwinds,namely rate i

5、ncreases in the property and casualty(P&C)sector and interest-ratedriven annuity sales in the life sector.Capital and balance sheets remain reasonably strong,yet a number of challenges have emerged,ranging from unaffordable premiums for property coverage to declining relevance and access for life po

6、licies in many countries,especially among younger generations.As natural disasters and cyber hacks have escalated in frequency and severity beyond previous projections,the inability of the industry to match price-to-risk profitably may be reaching a breaking point.Many homeowners,for instance,have h