Traditional life insurers face a slowdown as insurtech competitors and buyer reluctance take a toll, according to a paper from Deloitte.

Legacy models such as using agents to generate and complete sales are struggling in the face of nimble insurtechs and digital products and distribution, it says.

Modern consumers want more control of their research, purchase and service transactions, which does not work under the agent-only model.

Deloitte says products sold through an agent are hard to understand and buy in a digital format, and impose processes with which consumers are unwilling to grapple.

Take-up of individual life insurance in the US has hit a 50-year low, the paper says.

Years of low interest rates have depressed investment incomes, while a regulatory push for greater transparency is increasing costs. The established players’ strong brands and distribution networks do little to guarantee success in this environment.

Deloitte says insurers must create customer-centric, personalised products with relevant attached services such as wellness programs, and offer services through digital devices.

Insurers must offer automated, instantaneous quoting, pricing, policy delivery and services. They should strive for operational efficiency by leveraging emerging technologies such as robotics, blockchain and artificial intelligence.