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2024

U.S. Life Insurance Market

U.S. Life Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Distribution Channel : Opportunity Analysis and Industry Forecast, 2023-2032

BI : Insurance

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Author's: Tanmay Sharma| Nayna Chavan | Onkar Sumant
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The U.S. life insurance market was valued at $ 765.38 billion in 2023 and is projected to reach $ 1,476.31 billion by 2032, growing at a CAGR of 7.1% from 2024 to 2032. A life insurance policy is an agreement between an insurance policyholder and an insurance company whereby the insurer commits to provide a certain amount of payout in return for an insurance premium, either after the insured person's death or after a predetermined amount of time. In addition, the age of the policyholder is one of the main variables influencing the premium for a life insurance plan. Younger individuals pay a smaller life insurance premium, which progressively rises as individuals get older. There are several types of life insurance, but the two major categories are term life insurance and permanent life insurance. 

The U.S. life insurance market is currently experiencing significant growth, primarily driven by the rise in adoption for life insurance services among individuals, owing to the rise in awareness about life insurance policies among individuals. With a greater understanding of the benefits that life insurance can provide, more people are opting to secure coverage to protect their families and assets, thereby driving the growth of the market. The increasing investments by public and private companies further fuel the growth of the U.S. life insurance market. 

However, enforcement of strong rules by banks and financial institutions for providing insurance services, is certainly restraining the adoption of life insurance solutions across the U.S. Strong rules and restrictions implemented by several banks and financial service providers to offer life insurance services is further expected to restrict the growth of the market across the U.S. The process of insurance services can be complicated since it may need to operate with several platforms, databases, and technologies, which in turn are expected to hinder the market growth. However, technological advancements in life insurance services are anticipated to emerge as a lucrative opportunity for the growth of the U.S. life insurance market.  

The U.S. life insurance market is segmented on the basis of type and distribution channel. On the basis of type, the market is segmented into whole life, general annuity, pension, term life, endowment and accidental and health. As per distribution channel, the market is segmented into direct from insurers, insurance brokers and agencies, banks and others.  

On the basis of type, the general annuity segment dominated the U.S. life insurance market in 2023. Factors including a rise in demand for guaranteed income streams for a specified period or for life, offering financial stability during retirement, have fueled the general annuity segment growth in the U.S. life insurance market. Annuities also offer tax-deferred growth, meaning earnings accumulate without being subject to income tax until withdrawals are made. These factors are expected to propel the growth of the general annuity segment growth in the U.S. life insurance market. However, the whole life segment is expected to witness the highest growth in the coming years, as financial literacy improves globally, more people are becoming aware of the benefits of whole life insurance as a tool for long-term financial planning and security.

Segment Review

The U.S. life insurance market is segmented on the basis of type and distribution channel. On the basis of type, the market is segmented into whole life, general annuity, pension, term life, endowment and accidental and health. As per distribution channel, the market is segmented into direct from insurers, insurance brokers and agencies, banks and others.  

U.S. Life Insurance Market
By Insurance Type
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Whole Life is anticipated to have the fastest growth rate in the coming years

Competition Analysis

The report analyzes the profiles of key players operating in the U.S. life insurance market such as Prudential Financial, Inc, MetLife Services and Solutions, LLC, New York Life Insurance Company, The Manufacturers Life Insurance Company, The Northwestern Mutual Life Insurance Company, Teachers Insurance and Annuity Association of America, Athene, Corebridge Financial, Inc., Massachusetts Mutual Life Insurance Company, and Great-West Lifeco Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the U.S. life insurance market.

U.S. Life Insurance Market
By Distribution Channel
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Direct from insurer is anticipated to have the fastest growth rate

Recent Product Launch in the U.S. life insurance Market

In November 2022, Prudential Financial, Inc. launched Prudential FlexGuard Life, an innovative indexed variable universal life product that offers a flexible combination of protection, growth, and access to meet consumers’ changing life insurance needs. It includes death benefit protection with guaranteed duration options, multiple ways to grow cash values and the ability to accelerate death benefits in the event of a chronic or terminal illness if an additional volunteer has been added.

In February 2024, Sure launched Anywhere Insurance to liberate the insurance industry from the control of incumbent rate service organizations (RSOs) and legacy insurance product filings. Anywhere is a simple solution for complex insurance products. Anywhere provides first of its kind insurance programs designed for carriers, MGAs, and brands that want unique, customizable, go-to-market ready insurance products paired with end-to-end SaaS technology and APIs that can scale to hundreds of millions of customers.

In April 2023, The Penn Mutual Life Insurance Company (Penn Mutual) launched a Protection Whole Life (PWL), a permanent life insurance product that provides guaranteed lifetime protection at a competitive premium rate.

Top Impacting Factors 

Rise in adoption for life insurance services among individuals  

The rise in adoption of life insurance services among individuals is indeed a significant driver of growth in the life insurance market, owing to the rise in awareness about life insurance policies among individuals. However, after the COVID-19 situation, there was an increase in life insurance customers, which led to a surge in the burden of work and a decrease in the quality of claim processing & settlement services, thereby driving the growth of the market. Consequently, life insurance services are increasingly adopted by health insurance companies, as they offer various value-added services along with processing of the policy and scrutinizing the helpline facilities for knowledge sharing. This subsequently fuels the growth of the U.S. life insurance market. Moreover, the rise in demand for life insurance expertise and the necessary infrastructure to handle policy enrollment has driven the market demand in this sector. These aforementioned factors encouraged several private and public companies to adopt various strategies to expand their product portfolio. For instance, in February 2024, Sure launched Anywhere Insurance to liberate the insurance industry from the control of incumbent rate service organizations (RSOs) and legacy insurance product filings. Anywhere is a simple solution for complex insurance products. Anywhere provides first of its kind insurance programs designed for carriers, MGAs, and brands that want unique, customizable, go-to-market ready insurance products paired with end-to-end SaaS technology and APIs that can scale to hundreds of millions of customers. Therefore, such development strategies contribute in driving growth of market in the U.S.

Increasing strategic developments by public and private vendors

Increasing adoption of several strategic initiatives such as product launch, collaboration and partnerships strategies with other vendors indeed creates new opportunities for the U.S. life insurance market. By joining forces and leveraging complementary expertise, vendors can enhance their offerings, expand market reach, and address complex security challenges more effectively. Such strategies allow vendors to combine the individual products and technologies to create more comprehensive life insurance solutions. Increasing integration of complementary capabilities, such as risk management, capital formation and wealth accumulation, may offer customers a holistic claim approach. These aforementioned factors are likely to create lucrative opportunities to propel the market growth. 

Furthermore, several public and private businesses are adopting collaboration and partnerships strategies to enhance their portfolio by integrating life insurance solutions. For instance, in 2024, LIBRA Insurance Partners collaborated with DigitalOwl. This collaboration will utilize DigitalOwl technology via RGA's facultative underwriting program. Similarly, in June 2023, Curative Health Holdings acquired American Country Insurance Company (ACIC) to expand its insurance offering to more markets across the country. Thus, such strategies are further expected to propel numerous growth opportunities for the U.S. life insurance market.

Key Benefits for Stakeholders

  • The study provides an in-depth U.S. life insurance market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the U.S. life insurance market size is provided in the report.
  • The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the U.S. life insurance industry.
  • The quantitative analysis of the global U.S. life insurance market for the period 2023–2032 is provided to determine the U.S. life insurance market potential.

U.S. Life Insurance Market Report Highlights

Aspects Details
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By Type
  • Whole Life
  • General Annuity
  • Pension
  • Term Life
  • Endowment
  • Accidental & Health
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By Distribution Channel
  • Direct From Insurers
  • Insurance Brokers & Agencies
  • Banks
  • Others
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Key Market Players

The Northwestern Mutual Life Insurance Company, New York Life Insurance Company, The Manufacturers Life Insurance Company, MetLife Services and Solutions, LLC, Teachers Insurance and Annuity Association of America, Prudential Financial, Inc., Corebridge Financial, Inc., Massachusetts Mutual Life Insurance Company, Athene, Great-West Lifeco Inc.

Analyst Review

The U.S. life insurance market is characterized by intense competition, which can be attributed to the strong presence of established vendors. The life insurance industry continues to evolve as a result of the widespread use of digital technology, which promotes consumer interaction, product innovation, and operational effectiveness. Insurance companies use digital platforms such as AI, and data analytics to improve consumer experiences, distribution networks, and underwriting procedures. With the growth of urbanization, there is an increasing demand for intelligent insurance systems that can improve business operations. Overall, the U.S. life insurance market is driven by the need for intelligent and automated systems that can process and analyze vast amounts of data in real-time, enabling organizations to make informed decisions and take actions based on data-driven insights. Furthermore, the competitive landscape within the market is anticipated to become even more intense as a consequence of technological advancements, product expansions, and various strategies employed by key vendors.  

The U.S. life insurance market is anticipated to grow significantly during the forecast period. There are few major trends in the U.S. life insurance market such as growing adoption of cloud-based insurance platforms and surging emphasis on real-time information. These trends are positively impacting the overall market growth. 

Major companies operating in the U.S. life insurance market are focusing on strategic partnerships to develop advanced U.S. life insurance solutions. For instance, in January 2024, Ameritas partnered with Ethos, to launch a new index universal life insurance product. It offers an instant, hassle-free way for agents to protect a wider range of families with life insurance and financial benefits. Similar strategies by the key players is expected to help the market to grow significantly during the forecast period. 

Some of the key players profiled in the report include Prudential Financial, Inc, MetLife Services and Solutions, LLC, New York Life Insurance Company, The Manufacturers Life Insurance Company, The Northwestern Mutual Life Insurance Company, Teachers Insurance and Annuity Association of America, Athene, Corebridge Financial, Inc., Massachusetts Mutual Life Insurance Company, and Great-West Lifeco Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the U.S. life insurance market.

Author Name(s) : Tanmay Sharma| Nayna Chavan | Onkar Sumant

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U.S. Life Insurance Market

Opportunity Analysis and Industry Forecast, 2023-2032