Life Insurance Market

Life Insurance Market Overview

The global Life Insurance Market size was valued at USD XX billion in 2023 and is predicted to reach USD YY billion by 2030 with a CAGR of XY% from 2024-2030. The life insurance industry, also known as life assurance industry, refers to the sector of the financial industry that focus upon providing insurance coverage to individuals against the risk of death or other specified events such as terminal illness, critical illness, or accidental death. It is paid out as a sum of money either on the death of the insured person or after a specified period.

The market for insurance coverage is influenced by factors such as economic conditions, demographic trends, and advancements in technology. Life assurance is essential for estate planning, business protection, and it offers tax advantages ensuring financial security for policyholders.

The growing awareness among consumers about the importance of financial planning and protection is driving the demand for life assurance products leading to an increased innovation and competition within the industry. 

Market Dynamics and Trends

The rise in geriatric population drives the demand for life insurance policies as this demographic shift necessitates financial security for dependents and coverage for end-of-life expenses.

As per the latest report of the World Health Organization (WHO), by 2050, the global population of individuals belonging to the age group of 60 year and older is projected to reach 2.1 billion, doubling from 1 billion in 2020. This demographic transition drives the demand for life assurance policies to ensure comprehensive coverage including financial security among elderly people.

Moreover, the increasing economic stability makes life insurance products more affordable and attractive for individuals seeking long-term financial security for themselves and their dependents that further drives the life insurance market demand. As per the International Monetary fund (IMF) 2024 report, the world economy is expected to rise at 3.2% in 2024 and 3.3% in 2025. The increasing economic stability encourages individuals to invest in life insurance sector to protect their future.

Furthermore, the rising prevalence of diseases such as diabetes, heart disease, and cancer are fueling the life insurance market growth as individuals seek greater protection for their families.

According to the World Health Organization (WHO) report 2024, around 20 million new cancer cases and 9.7 million deaths occurred in 2022 due to cancer. The increasing incidence of such life-threatening diseases boosts the demand for life assurance policies to tackle financial burdens associated with medical emergencies and long-term illnesses.

However, the high cost and complexities associated with purchasing of life insurance products including expensive premiums and detailed underwriting processes hinders the market growth.

On the contrary, the integration of artificial intelligence (AI) in the life insurance platform creates ample future growth opportunities as this technology assist in risk evaluation, fraud detection, and personalized policy recommendations.

For instance, in March 2024, Bajaj Allianz General launched 'Insurance Samjho,' a GenAI-powered bot using AI. It aims to simplify insurance complexities for customers and address policyholder dissatisfaction during claim settlement, that arises due to lack of understanding.

Market Segmentation and Scope of The Study

The life insurance market report is divided on the basis of type, coverage amount, policy duration, distribution channels, end user, and region. On the basis of type, the market is divided into term insurance, and whole life insurance and universal insurance. On the basis of coverage amount, the market is divided into low coverage, mid coverage, and high coverage. On the basis of policy duration, the market is classified into, short-term, medium-term, and long-term. On the basis of distribution channels, the market is divided into agencies, brokers, direct sales, and digital platforms. On the basis of end user, the market is divided into children, adults, and senior citizens. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the life insurance market share at present and is projected to continue its dominance throughout the forecast period. The growing prevalence of diseases such as heart disease and cancer lead to individuals seek life assurance policies for financial protection against health-related risks.

According to the American Cancer Society (ACS) report 2022, an estimated 1.9 million new cancer cases are diagnosed and 609 thousand cancer deaths occurred in the U.S. in 2022.  The rise in health concerns is leading more individuals to seek life assurance for financial protection, prompting insurers to develop tailored policies to address the growing demand.

Moreover, the rising economic stability is further driving the growth of the lifescience industry in the region. The improvement in financial conditions leads to a surge in investment in life assurance products, driven by increase in the need for financial security and long-term protection for families.

As per the latest report of World Bank Group, in 2023, the per capita disposable income in Canada accounted for USD 53,371 as compared to USD 43,537 in 2020. The increasing economic stability encourages individuals to invest more in whole life insurance policies due to high purchasing power that enables them to allocate more funds toward securing their future.

On the other hand, the Asia-Pacific region is expected to show a steady rise in the life insurance market trends. This growth is driven by the presence of key players such as Life Insurance Corporation (LIC) of India, China Life Insurance Company Limited, Ping An Insurance Company of China, Ltd., and others that are introducing customized policies to address varied consumer needs.

For instance, in January 2023, Life Insurance Corporation (LIC) of India launched Jeevan Azad a traditional individual savings life assurance plan that offers a combination of protection and savings benefits such as maturity and death benefits.

Thus, the launch of such customized life assurance policies is driving the growth of the market by providing consumers with more tailored options and encouraging more individuals to invest in life assurance for their financial security.

Furthermore, the rise in aging population in the region further fuels the growth of the market. As people age, they seek more financial security and protection for their life that leads to a higher demand for life insurance policies.

As per the latest report published by the World Bank Group, the Japan’s population aged over 65 years accounted for 30% of the overall population in 2023. Life insurance policies offer coverage for health-related expenses that helps senior citizens to manage their financial needs and maintain quality of life in the later years. 

Competitive Landscape

Various players in the life insurance industry includes Allianz SE, AXA SA, Ping An Insurance Company of China, Ltd., China Life Insurance Company Limited., Elevance Health., American International Group, Inc., MetLife Services and Solutions, LLC., Humana Inc., Prudential Financial, Inc., Life Insurance Corporation (LIC) of India., and others. These market players are opting various strategies such as product launches to maintain their dominance in the global life assurance industry.

For instance, in February 2024, the Life Insurance Corporation of India (LIC) launched a non-participating product ‘Amritbaal’. The product is designed for children and it is a non-linked, non-participating, individual, savings, life assurance plan.

Moreover, in January 2024, Prudential Financial, Inc. collaborated with Fidelity Investments to launch SimplyIncome, a product designed for workplace retiree that allows participants to convert a portion of their retirement savings into a monthly income stream for life, regardless of how long they live.

Key Benefits

• The report provides quantitative analysis and estimations of the life insurance market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future life insurance market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of each stakeholders.

Life Insurance Market Key Segments

By Types

• Term insurance

• Whole life insurance

• Universal insurance

By Coverage Amount 

• Low Coverage

• Mid Coverage

• High Coverage

By Policy Duration

• Short-term

• Medium-term

• Long-term

By Distribution Channels 

• Agencies

• Brokers

• Direct sales

• Digital platforms

By End User

• Children

• Adults

• Senior Citizens

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

KEY PLAYERS

• Allianz SE

• AXA SA

• Ping An Insurance Company of China, Ltd.

• China Life Insurance Company Limited.

• Elevance Health.

• American International Group, Inc.

• MetLife Services and Solutions, LLC.

• Humana Inc.

• Prudential Financial, Inc.

• Life Insurance Corporation (LIC) of India.