While insurers collected trillions in premiums last year, the real story of the life and health insurance industry is found in the millions of families protected, the record claims paid, and the evolving gaps in coverage that these compelling statistics reveal.
Key Takeaways
- In 2022, the U.S. life insurance industry wrote $15.3 billion in new annualized premium for individual life insurance policies
- Global life and health insurance direct premiums written reached $2.8 trillion in 2022, marking a 4.2% increase from 2021
- The U.S. health insurance market size was valued at $1.47 trillion in 2023 and is projected to grow at a CAGR of 6.1% from 2024 to 2030
- In 2022, 56% of U.S. adults aged 44-49 owned individual life insurance, the highest rate among age groups
- Term life insurance policies in the U.S. had an average face amount of $192,000 for new policies in 2022
- Whole life insurance accounted for 27% of new individual life premium sales in the U.S. in 2022 at $4.0 billion
- U.S. employer-sponsored health insurance premiums increased 5.1% for family coverage in 2023 to $23,968 annually
- Medicare spending accounted for 21% of total U.S. national health expenditures in 2022 at $944 billion
- Average out-of-pocket maximum for single coverage in U.S. employer plans was $3,992 in 2023
- Uninsured rate among U.S. nonelderly adults was 10.1% in 2022
- 62% of U.S. life insurance owners are married, compared to 50% of non-owners, per 2023 LIMRA data
- Women represent 52% of U.S. individual life insurance policyholders in 2022
- U.S. life insurers' combined ratio for individual life was 92.4% in 2022
- Total U.S. life insurance benefits paid reached $1.05 trillion in 2022, including death and annuity benefits
- Health insurance claims in the U.S. averaged $12,000 per hospital stay in 2022
The global life and health insurance industry remains strong and massive despite shifting trends.
Claims and Payouts
- U.S. life insurers' combined ratio for individual life was 92.4% in 2022
- Total U.S. life insurance benefits paid reached $1.05 trillion in 2022, including death and annuity benefits
- Health insurance claims in the U.S. averaged $12,000 per hospital stay in 2022
- U.S. life insurers paid out 98.7% of individual life claims within 14 days in 2022
- Medicare fee-for-service spending per enrollee was $13,755 in 2022
- Average U.S. life insurance claim size for death benefits was $145,000 in 2022
- Denied life insurance claims rate was 2.1% in U.S. in 2022, mainly for misrepresentation
- Long-term care insurance benefits paid totaled $13.8 billion in 2022 for 400,000 claimants
- U.S. accident and health insurers incurred $920 billion in claims and benefits in 2022
- Group health insurance loss ratio averaged 85.2% in U.S. employer plans in 2022
- Cancer accounted for 22% of U.S. individual life insurance claims in 2022
- Average disability insurance claim duration was 2.8 years in U.S. 2022 data
- U.S. annuity payout ratio was 92% of premiums collected in 2022
- Heart disease caused 28% of U.S. life insurance payouts in 2022
- Health insurance medical loss ratio (MLR) for U.S. individual market was 82.3% in 2022
- U.S. life settlement claim payouts averaged 25% of face value in 2022 transactions
- COVID-19 related life insurance claims totaled $6.5 billion in U.S. through 2022
- Average hospital claim reimbursement under U.S. health insurance was $45,000 for surgical stays in 2022
- Disability claims incidence rate was 0.45% for U.S. group LTD policies in 2022
- U.S. Medicare Advantage plans had 88% average star rating compliance for claims processing in 2023
- Prescription drug claims under U.S. employer health plans averaged $1,242 per employee in 2022
- Fraudulent health insurance claims cost U.S. insurers $80 billion annually in 2022 estimates
- U.S. life insurers' return on equity was 12.4% in 2022
- Average recovery rate for contested U.S. life claims was 15% after appeals in 2022
- Mental health claims under U.S. health insurance rose 20% to 12% of total claims in 2022
- U.S. group life claims payout ratio was 75% of premiums in 2022
Claims and Payouts Interpretation
Despite the comforting reliability of paying out over a trillion dollars in benefits with impressive speed and efficiency, the industry’s tight financial ratios and the sobering prevalence of diseases like cancer and heart disease in claims remind us that this business is built on the very human, and often costly, certainty of mortality and misfortune.
Health Insurance Specifics
- U.S. employer-sponsored health insurance premiums increased 5.1% for family coverage in 2023 to $23,968 annually
- Medicare spending accounted for 21% of total U.S. national health expenditures in 2022 at $944 billion
- Average out-of-pocket maximum for single coverage in U.S. employer plans was $3,992 in 2023
- Medicaid paid for 49% of U.S. long-term care spending in 2022, totaling $225 billion
- 91% of U.S. employer-sponsored health plans offered prescription drug coverage in 2023
- Dental coverage was provided by 74% of U.S. employer health plans for single coverage in 2023
- Vision coverage included in 81% of U.S. employer-sponsored health plans in 2023
- Average U.S. individual Marketplace health insurance premium before subsidies was $7,246 annually in 2023
- High-deductible health plans (HDHPs) enrolled 29% of U.S. employer-covered workers in 2023
- Telehealth utilization in U.S. employer plans was available to 97% of covered workers in 2023
- Average hospital inpatient admission cost covered by U.S. health insurance was $2,883 per day in 2022
- Short-term limited duration insurance (STLDI) enrollment grew 50% to 3 million in 2022 in the U.S.
- Average employee contribution for family health coverage was 29% or $6,575 in U.S. employer plans in 2023
- Medicare Part D prescription drug spending reached $109 billion in 2022
- PPO plans covered 48% of U.S. employer-insured workers in 2023
- HMO enrollment among employer plans dropped to 13% in 2023 from 18% in 2018
- Average annual deductible for single HDHP/SOAP coverage was $2,004 in 2023 U.S. employer plans
- 64% of U.S. employer plans required prior authorization for specialty drugs in 2023
- CHIP (Children's Health Insurance Program) covered 9.1 million children in FY 2022
- Average cost-sharing for primary care office visits was $25 copay in U.S. employer plans in 2023
- TRICARE covered 9.3 million beneficiaries in 2022
- 42% of U.S. employer plans offered Health Savings Account (HSA) eligibility in 2023
- Individual health insurance exchange enrollment subsidies averaged $5,919 per enrollee in 2023
- Long-term care insurance claims averaged $50,000 annually per claimant in 2022 U.S. data
- 55% of U.S. adults aged 18-64 were covered by employer-sponsored health insurance in 2022
- Average premium for Medicare Part B was $170.10 per month in 2023 for 63 million enrollees
Health Insurance Specifics Interpretation
While Americans navigate an employer-sponsored gauntlet of soaring premiums, deductibles, and prior authorizations, they can at least take solace in the fact that their telehealth appointment to complain about it will probably be covered.
Industry Size and Growth
- In 2022, the U.S. life insurance industry wrote $15.3 billion in new annualized premium for individual life insurance policies
- Global life and health insurance direct premiums written reached $2.8 trillion in 2022, marking a 4.2% increase from 2021
- The U.S. health insurance market size was valued at $1.47 trillion in 2023 and is projected to grow at a CAGR of 6.1% from 2024 to 2030
- Life insurance penetration rate in the U.S. stood at 52% of adults owning a policy in 2023, down from 60% in 2013
- The global health insurance market was valued at $1.2 trillion in 2022 and expected to reach $2.3 trillion by 2030 at a CAGR of 8.5%
- U.S. individual life insurance new premium sales increased by 12% in 2022 to $14.7 billion
- Employer-sponsored health insurance covered 155 million Americans in 2022, representing 49% of the population
- Term life insurance accounted for 41% of new U.S. individual life policy sales in 2022 with 5.2 million policies issued
- The Asia-Pacific region dominated the global life insurance market with 45% share in 2022, driven by China and India
- U.S. group life insurance in force totaled $9.2 trillion in 2022, covering 175 million lives
- Medicaid enrollment peaked at 94 million in 2022, accounting for 29% of U.S. health coverage
- Global reinsurance for life and health insurance grew by 3.1% to $284 billion in premiums in 2022
- U.S. Medicare Advantage enrollment reached 30.8 million in 2023, up 89% since 2016
- Individual annuity sales in the U.S. hit a record $385.6 billion in 2022
- The European life insurance market premiums grew by 2.8% to €1.1 trillion in 2022
- U.S. accident and health insurance premiums written totaled $1.1 trillion in 2022
- Whole life insurance face amount in force in the U.S. was $13.8 trillion in 2022
- Marketplace enrollment under the ACA hit 16.3 million in 2023, a record high
- Global life insurance new business annual premium equivalent (APE) grew 5% to $300 billion in 2022
- U.S. health insurance premiums per enrollee averaged $7,739 for employer plans in 2023, up 7% from 2022
- Indexed universal life (IUL) sales in the U.S. reached $11.2 billion in new annualized premiums in 2022
- In 2022, 54% of Americans had private health insurance, primarily employer-sponsored
- The U.S. long-term care insurance market saw $13.5 billion in premiums in 2022
- Global health insurance premiums grew 7.2% in real terms in 2022 to $2.0 trillion
- U.S. group health insurance enrollment was 114 million in 2022
- Variable universal life sales dropped 25% to $1.8 billion in 2022 in the U.S.
- Medicare Supplement (Medigap) policies covered 12 million enrollees in 2022
- The Canadian life insurance market premiums reached CAD 80 billion in 2022, up 6%
- U.S. dental insurance premiums written were $160 billion in 2022
- Final expense life insurance sales in the U.S. totaled $2.8 billion in new premiums in 2022
Industry Size and Growth Interpretation
While the global life and health insurance industry quietly amasses trillions, the reality in the U.S. is a bittersweet cocktail of soaring premiums, record annuity sales, and a troublingly shrinking number of adults who actually own a life policy, proving we're better at funding the future than securing it.
Life Insurance Specifics
- In 2022, 56% of U.S. adults aged 44-49 owned individual life insurance, the highest rate among age groups
- Term life insurance policies in the U.S. had an average face amount of $192,000 for new policies in 2022
- Whole life insurance accounted for 27% of new individual life premium sales in the U.S. in 2022 at $4.0 billion
- The average duration of U.S. term life policies sold in 2022 was 22 years
- Indexed universal life represented 38% of U.S. individual life new annualized premium in 2022
- Lapse rates for U.S. individual life insurance averaged 4.8% in 2022, down from 5.2% in 2021
- Universal life insurance in force in the U.S. totaled $7.5 trillion face amount in 2022
- 72% of U.S. millionaires own life insurance, compared to 52% of the general population in 2023
- Group term life insurance covered 80% of U.S. workers with employer-sponsored plans in 2022, averaging 1.2 times salary
- The average age of new U.S. whole life policyholders was 45 years in 2022
- Variable life insurance sales in the U.S. fell 18% to $1.2 billion in new annualized premiums in 2022
- 41 million U.S. households had no life insurance coverage in 2023, creating a $19.4 trillion protection gap
- Simplified issue term life policies grew 15% in U.S. sales volume in 2022
- Corporate-owned life insurance (COLI) assets totaled $24 billion in the U.S. in 2022
- The average U.S. term life premium for a 30-year-old female non-smoker was $26 per month for $500,000 coverage in 2023
- Buy-sell life insurance policies funded 25% of U.S. small business succession plans in 2022
- U.S. life insurers paid $48.5 billion in individual life insurance benefits in 2022
- No-lapse guarantee universal life (NLGUL) sales increased 22% to $3.1 billion in 2022 in the U.S.
- In 2022, employer-sponsored group universal life had $1.2 trillion in face amount in force in the U.S.
- Average U.S. life expectancy at birth was 76.4 years in 2022, influencing life insurance pricing
- 28% of U.S. life insurance policies lapsed within the first three years in 2022 studies
- Supplemental term sales in the U.S. reached 2.1 million policies in 2022
- U.S. life settlement market paid out $4.1 billion for policies with $11.7 billion face amount in 2022
- Preferred risk class accounted for 52% of new U.S. individual life policies issued in 2022
- Employer-provided life insurance coverage rate was 60% among U.S. private sector workers in 2022
Life Insurance Specifics Interpretation
In the grand gamble of American life, where over 40 million households bet on immortality and lose, the data reveals a nation where peak midlife pragmatism—with 56% of 44-49-year-olds getting insured—meets a sobering $19.4 trillion chasm of what's left unsaid and unfunded when the final bill comes due.
Policyholder Demographics
- Uninsured rate among U.S. nonelderly adults was 10.1% in 2022
- 62% of U.S. life insurance owners are married, compared to 50% of non-owners, per 2023 LIMRA data
- Women represent 52% of U.S. individual life insurance policyholders in 2022
- Homeowners are 2.5 times more likely to own life insurance than renters in the U.S., 2023 data
- 48% of U.S. Gen Z adults (18-25) own life insurance, up from 37% in 2021
- College graduates in the U.S. have a 68% life insurance ownership rate vs. 41% for non-grads in 2023
- 65% of U.S. parents with minor children own life insurance, compared to 44% without kids, 2023
- Black Americans have a 44% life insurance ownership rate vs. 54% for whites in 2023 U.S. data
- Hispanic U.S. adults own life insurance at 47% rate, with 60% citing affordability as barrier, 2023
- 73% of U.S. adults aged 30-49 with household income over $100k own life insurance, 2023
- Self-employed Americans own life insurance at 61% rate vs. 51% for employees, 2023 LIMRA
- 39% of U.S. unmarried partner households own life insurance, lower than 59% married, 2023
- Baby Boomers (56-74) have 62% life insurance ownership in U.S., highest among generations, 2023
- 27% of U.S. low-income households (<$35k) own life insurance vs. 70% high-income, 2023
- Urban U.S. residents own life insurance at 55% vs. 48% rural, per 2023 data
- 58% of U.S. Millennials have employer-provided group life insurance, 2023 KFF data
- Women with children under 18 own life insurance at 64% rate in U.S., 2023
- 45% of U.S. Asian Americans own life insurance, citing family protection as top reason, 2023
- Households with mortgages own life insurance at 68% rate in U.S., 2023 LIMRA
- 51% of U.S. adults aged 25-29 own life insurance, primarily term, 2023 data
- Retirees in U.S. maintain life insurance at 49% ownership rate for legacy planning, 2023
- 67% of U.S. business owners with employees own life insurance, 2023
- Single women in U.S. own life insurance at 46% vs. 52% for single men, 2023 LIMRA
- 59% of U.S. households in the Northeast own life insurance, highest regionally, 2023
- LGBTQ+ Americans own life insurance at 53% rate, motivated by family security, 2023
Policyholder Demographics Interpretation
While life insurance ownership paints a vivid portrait of American responsibility—tying itself to marriage, mortgages, and milestones—the stubbornly uninsured remind us that for many, this safety net still feels like a luxury woven from privilege rather than a common thread of security.
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