The life insurance and annuity market enters 2026 with sharper direction and rising customer expectations. Leaders across the industry are navigating a landscape shaped by lower interest rates, tighter regulations, a clearer tax and legislative framework and accelerating innovation.

To stay competitive in this evolving environment, success depends on delivering integrated solutions, modernizing capabilities and adapting to client needs. By taking these actions, financial professionals can be empowered to act with confidence as strategic partners in risk and wealth management.

Learn about five trends that can help protect and grow your book of business and your clients' financial wellbeing by requesting our report, Shifting Dynamics in the US Life Insurance and Annuity Market in 2026.

Here's a glimpse of some of our key findings

  • Annuities gain traction as carriers simplify products: Fixed index annuities (FIAs) have grown increasingly popular, offering both protection and possible growth, while fixed annuities provide multi‑year guarantees that help offset volatility and reinvestment risk.
  • Demographics reshape demand: An aging population seeks to balance accumulation and protection needs, with Millennials and Gen Z pushing for fast, digital-first experiences.
  • Sales and marketing evolve: Driven by personalization and storytelling, financial professionals are having to differentiate beyond products.
  • AI-driven insurance meets rising regulatory demands: Carriers leverage AI for underwriting and fraud prevention, while regulators demand improved data integrity and cybersecurity.
  • Demand for multi-purpose wealth platforms is increasing: The integration of investments, insurance and financial planning into a seamless experience is driving demand for proprietary strategies tailored to specific client segments.
  • Legislative changes strengthen planning clarity: Extended tax rates, new deductions for seniors and expanded opportunities for business owners are key developments.
  • Companies embrace advanced planning for workforce: A strategic shift is underway as companies adopt advanced planning strategies, such as executive benefits to retain key talent and succession planning for business continuity.

The 5 trends to know right now

M&A deals are fewer but larger as private equity drives tech focused consolidation across the life and annuity marketplace.

Simplified, flexible annuity solutions — especially FIAs — are gaining momentum as clients seek protection and sustainable income in a shifting rate environment.

Carriers are modernizing legacy systems and expanding AI adoption to speed underwriting, enhance personalization and strengthen cybersecurity.

Millennials and Gen Z are pushing advisors toward digital‑first, personalized engagement supported by social platforms and AI‑driven tools.

Recent tax extensions and evolving regulations are creating more planning clarity and heightening demand for estate, business and executive benefit strategies.

With many changes in play, it's important to stay abreast of the key areas that may significantly influence the US life insurance and annuity space in 2026 and beyond. Read the report and connect with your Gallagher consultant to strategize.

Request the report

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