Life insurers have been urged to create simplified policies, develop painless claims processes and modernise definitions and benefit structures to create a sustainable industry.

Ilan Leas, author of an Actuaries Institute dialogue paper called The Future of Life Insurance, says there is a disconnect between what the industry sells and what consumers expect.

The community demands life insurance that is trusted, fair value, flexible, understood and sustainable, he says. Insurers should “distil more data” and undertake greater analysis to deliver better products.

Simple disclosure requirements are needed, plus better use of technology to help consumers and greater flexibility through portability of insurance, Mr Leas – MD of consultancy Retender – says.

He also wants to see standardisation of conditions, definitions and contracts, and a review of how personal data is used to drive innovation.