Life insurance distribution – the channels through which life insurance products reach people – remains highly market specific, shaped by differences in product design, retirement systems, regulation and consumer preferences. These characteristics continue to determine the balance between insurance intermediaries, bancassurance and direct distribution channels.

This matters because distribution is fundamental to life insurance. Products are long-dated and often difficult to compare. Many require explanation, advice or active engagement. Insurers might design and create products, provide risk capital and manage long-term liabilities, but the final sale of these products is often controlled by an intermediary such as an affiliated agent, independent adviser, bank or even a digital platform. Competition therefore extends beyond insurance products to the distribution channels insurers rely on to reach people.

Intermediaries that help arrange and sell protection to people account for more than half of life insurance premiums in most markets analysed by SRI for this report. They play a particularly important role when people need personalised advice across protection, retirement and wealth planning. In Germany, intermediaries distribute more than 70% of new life business.

The bancassurance model remains strong where banks play a central role in customers' financial lives, and where life insurance is closely integrated within savings and wealth management. Banks distribute roughly two thirds of life premiums in France. Bancassurance is also the dominant model in Italy and plays an important role across parts of Asia. Direct distribution, where insurers sell products straight to clients, generally has a smaller share globally and is best suited to simpler protection products requiring relatively little guidance. 

Independent advisers, brokers and other multi-provider intermediaries are gaining share in key insurance markets. Since 2019, independent distribution has generally expanded while affiliated intermediaries have held steady or lost share. In the US, independent distribution has increased by more than eight percentage points and now accounts for around 60% of individual life business. 

There is an important structural reason for this change, which is linked in the change of pension provision. As more people move to pension systems where they have the option to manage their own pensions, the need for financial advice is increasing. At the same time, consolidation and higher professional requirements are creating fewer, larger intermediary firms with greater capacity to invest in compliance, technology and adviser support. Independent intermediaries combine personalised advice with access to products from multiple insurers.

But the shift towards independent intermediaries is not uniform across markets. Bancassurance and affiliated agencies remain strong where established customer relationships and market structures favour them. Distribution models therefore continue to evolve differently across markets.