Only two scales of providers will succeed in the protection market as it becomes divided between massive multinationals and small nimble insurers, according to RGA.
The reinsurer also believes the National Employment Savings trust (NEST) is a crucial development but warned its impact could be threatened if the economy has not strengthened enough by its introduction.
Speaking at RGA's Write the future conference, David Gulland, managing director of the reinsurer, explained that insurers would need to follow one of two alternative ways to succeed.
"One is big is best," he said.
"These are providers who use their financial muscle to really make a difference.
"They can weather the storm for next three or five years and so I think the big multi-national, multi-channel providers have a fantastic future.
"But I also think the small nimble ones do too," he continued.
"They have fast nimble boards with less internal politics about decisions and are also very close to their customers, analyzing data and spending time talking to the regulator saying we are a lot less drain on you.
"So I think these two extremes of models are the way forward," he added.
Gulland also discussed the importance of NEST to the sector, suggesting that its impact would be a vital gradual long term one and that the nation's economic strength would be a key factor at its launch.
"I think NEST is really important," he said.
"It's a gradual change but will be sewing seeds for the future. It won't revolutionise things in next two or three years but I do think it will change the group market in maybe five years.
Gulland was not certain on this time period, but continued that it would depend on whether the government could survive the full term and what the reaction to NEST was.
"When contributions start hitting employers and employees, whether we've got out of the worst part of downturn is important so people don't complain too much.
"If people start moaning about NEST then I think we're really stuffed, but hopefully it won't be too painful at the start and then we can grow from that," he added.
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