The life and annuities (L&A) industry is navigating a complex operating environment. Recent research reveals that the net income in L&A remained relatively flat in the first half of 2026, with total income falling 8.1%, driven in part by declines in premiums and annuity considerations. In a more challenging growth environment, every opportunity counts, making it imperative for carriers to maximize business opportunities already within reach.
As we approach year-end and plan for the new year, carriers should revisit efficiencies, identify areas for improvement, and find ways to capture more business from existing demand as well as generate new demand.
Unlocking this potential means addressing current operational inefficiencies. Often, we see carriers relying on legacy systems that don't connect easily, splitting customer and policy information across siloed systems. Additionally, manual processes can slow transactions and increase error risk, while differing compliance and reporting requirements further complicate an already complex process.
Reducing friction starts with better use of what carriers already have: valuable data. Connecting the dots between data is key to streamlining operations, improving services, and capturing more of the market's potential. With enhanced connectivity across underwriting processes, carriers can reduce administrative burdens and overall improve visibility. For advisors, this can be a game-changer, as better access to product information, application requirements, and case statuses means more time supporting clients. For carriers, delivering this experience can strengthen relationships with distribution partners. A win-win overall.
The opportunity here is clear: make existing operations more efficient while creating more capacity to serve customers and place business.
Fast-tracking policy issuance
Every additional manual step in application, underwriting, or case management can add time and costs to getting a policy issued and placed. That inefficiency grows even more when information moves between multiple people, systems, and organizations.
McKinsey's analysis of AI-enabled insurance transformation found that insurance organizations implementing AI-enabled transformations were seeing 20% to 40% reductions in customer onboarding costs and 10% to 20% improvements in agent productivity. For life insurers, the potential is particularly relevant given how much information must move across applicants, advisors, carriers, underwriting teams, and external data sources. Every handoff creates room for errors and can add delays and extra work.
Modern tools, like AI, can help cut manual overload by gathering and summarizing information, identifying missing information, routing work, surfacing relevant documentation, and supporting underwriting workflows. As carriers gain access to more structured data and can analyze it more quickly, they may also be able to make risk decisions with fewer manual steps while maintaining appropriate controls.
The Society of Actuaries' 2026 research on AI and life underwriting highlights the importance of data quality, workflow integration, and governance in determining whether AI delivers value in underwriting. Faster cycle times can ultimately mean less labor devoted to each case, lower costs associated with moving business through the organization and supporting it over time, and fewer opportunities for prospects to drop out.
But faster policy issuance is only one part of the opportunity. Advisors also need the capacity to focus on customers and move more business toward placement.
Customer-forward state of mind
Advisors often spend substantial time finding information, navigating multiple systems, managing applications, and following up on case requirements, limiting the time they are able to spend with customers.
AI can act as a force multiplier by summarizing product and case information, surfacing relevant documentation, guiding advisors through workflows, and helping answer questions based on approved information. The benefits extend to customers. When technology reduces administrative work, advisors can spend more time understanding customers' financial needs and ensure they are recommending suitable coverage as those needs evolve.
This focus on AI is becoming increasingly important as the industry considers the future of distribution. LIMRA's 2026 research points to AI, integrated workflows and automation as part of the technology changes reshaping advisor roles, while the industry continues to face advisor growth and succession pressures.
However, none of this works reliably if the underlying data is fragmented. Carriers need consistent definitions, joined sources, and clear permissions, so AI can surface useful information without creating new compliance or security risks.
Modernizing the experience means strengthening distribution relationships
The people and relationships that support distribution also matter for sustaining carrier growth. A carrier can invest heavily in attracting new business, but fragmented systems, slow processes, and administrative burdens can make it harder for advisors to serve their clients. As a result, inefficiencies can weaken distribution relationships and affect the customer experience.
This should become a focus as new generations of workers enter the market. Younger workers increasingly expect a modern and seamless technology experience. The traditional process of moving between separate systems for applications, illustrations, underwriting information, and case status creates a pain point. A modern workflow can bring relevant information into one place and provide contextual assistance rather than requiring advisors to know which system contains each piece of information.
Carriers should focus on creating more connected experiences that bring relevant information and workflows together. In doing so, it creates a competitive differentiator and helps strengthen the distribution relationship, building the pillars for long-term growth.
Looking ahead
For the L&A sector, growth doesn't always mean finding entirely new sources; in fact, meaningful opportunity already exists in the current business moving through the organization.
The key is using modernization to address the operational barriers that limit growth. Those who get the most from connectivity and modern technology like AI will not necessarily be the ones deploying the most tools. They will be the ones using AI deliberately to address specific business challenges and create measurable value. For L&A carriers, the mandate is clear — leverage technology and AI to improve existing operations so more of the business already within reach can move forward, and long-term relationships can be built.
