Greater demand for innovations in future — The life and pensions market will continue to grow in the long term. This is definitely indicated by the enormous challenge to Europe’s retirement systems posed by rising life expectancies and falling birth rates. Meeting this challenge will require a shift from state-run to increasingly private pension systems. If the insurance industry wants to profit from this development, it will have to offer product innovations which cover the wide range of client requirements more effectively. Innovativeness and a stronger emphasis on modern life and pensions solutions with variable guarantees and risk products will be crucial to a life insurer’s success. Modern life and pensions solutions do not necessarily mean that the client has to forego guarantees, but rather that the costs of the guarantees are structured in a way that ties up less capital.