Key Highlights
- The global life insurance industry was valued at approximately $2.84 trillion in 2022
- Over 50% of the world's population do not have any form of life insurance coverage
- The U.S. life insurance industry paid out over $90 billion in death benefits in 2021
- The majority of life insurance policies globally are term life, accounting for approximately 70% of policies
- The global life insurance market is expected to grow at a CAGR of 3.7% from 2023 to 2030
- Asia-Pacific region holds the largest share of the global life insurance market, with over 55% of the total market volume
- In 2022, the number of life insurance policies in force worldwide reached approximately 3.2 billion
- The average life insurance premium worldwide increased to $480 in 2022
- Millennials hold about 23% of all life insurance policies in the United States
- The penetration rate of life insurance in India is around 3.2%, which is significantly lower than global averages
- The average age of life insurance policyholders in the US is approximately 50 years old
- The top three reasons for purchasing life insurance globally are income replacement, funeral expenses, and estate planning
- The COVID-19 pandemic led to a 10% increase in new life insurance policy sales in the US in 2020
With a valuation soaring to $2.84 trillion in 2022 and over half the world’s population still uninsured, the global life insurance industry is both expanding and transforming at a rapid pace, driven by digital innovation, shifting demographics, and evolving consumer needs.
Claims and Policy Data
- The average duration of a life insurance claim process is approximately 4-6 weeks in most markets
- The death benefit claim ratio (claims paid vs. premiums earned) in the life insurance industry is approximately 65%, indicating a healthy risk profile
- The annual mortality rate in the world is approximately 7.7 deaths per 1,000 people, which influences life insurance mortality risk assessments
- The average duration of a typical life insurance claim process in Europe is approximately 3-5 weeks, depending on country and policy type
Claims and Policy Data Interpretation
Consumer Demographics and Behavior
- Over 50% of the world's population do not have any form of life insurance coverage
- Millennials hold about 23% of all life insurance policies in the United States
- The average age of life insurance policyholders in the US is approximately 50 years old
- The top three reasons for purchasing life insurance globally are income replacement, funeral expenses, and estate planning
- Consumers tend to overestimate the cost of life insurance by nearly 50%, contributing to lower purchase rates
- In the US, Black and Hispanic Americans are underrepresented in life insurance ownership, with coverage rates of approximately 60% and 50%, respectively, compared to over 80% among White Americans
- Approximately 80% of millennials in the US prefer to purchase insurance policies online rather than through agents
- The average life insurance premium for seniors aged 65+ in the US is around $720 per year, which is higher than the average for all age groups
- In 2022, the top five reasons for declining life insurance applications were health issues, high premiums, lack of awareness, age, and lifestyle choices
- The majority of consumers in emerging markets prefer digital-first channels for purchasing life insurance, with over 60% indicating a preference for online platforms
- The percentage of women purchasing life insurance globally has increased to 42% in 2022, showing growing gender parity in the industry
Consumer Demographics and Behavior Interpretation
Geographical Market Insights
- Asia-Pacific region holds the largest share of the global life insurance market, with over 55% of the total market volume
- In Europe, the penetration rate of life insurance is around 65%, with Western Europe exhibiting higher rates than Eastern Europe
Geographical Market Insights Interpretation
Industry Trends and Innovations
- The majority of life insurance policies globally are term life, accounting for approximately 70% of policies
- The COVID-19 pandemic led to a 10% increase in new life insurance policy sales in the US in 2020
- The global life insurance industry employs over 6 million people worldwide
- Approximately 65% of new life insurance policies in developed countries are sold online
- In 2021, the fastest-growing segment in life insurance was variable universal life policies, with a growth rate of 12%
- The average term length for a life insurance policy globally is approximately 20 years
- The renewal rate for life insurance policies in the US rises annually, with about 75% renewal in 2022
- The digital channel now accounts for 30% of all life insurance policies sold globally, with expected growth to 45% by 2025
- The small and medium-sized enterprise (SME) sector increasingly relies on life insurance for employee benefits, accounting for over 25% of corporate policies globally
- The use of telematics and IoT devices is increasingly being integrated into life insurance underwriting, improving risk assessment
- Increased awareness and regulation have contributed to a 15% rise in life insurance premium costs in Europe from 2019 to 2022
- The global trend towards sustainable investing is influencing life insurance company portfolios, with over 30% of assets now allocated to ESG-focused investments
- The percentage of life insurance policies with riders (additional coverages) has increased to 40% globally, reflecting consumer demand for tailored coverage
- The adoption rate of artificial intelligence applications in life insurance underwriting is projected to reach 55% by 2025, streamlining processes and reducing costs
- Approximately 70% of life insurance claims are now initiated online, reflecting changing consumer behaviors
- The average commission rate for life insurance agents in the US is around 60% of the first-year premium, decreasing substantially in renewals
- The global microinsurance segment, including small life policies, is growing at a CAGR of 8%, targeting underserved populations
- The proportion of digital-only life insurance companies globally has increased to 25% as of 2023, with growth driven by fintech innovations
Industry Trends and Innovations Interpretation
Market Size and Value
- The global life insurance industry was valued at approximately $2.84 trillion in 2022
- The U.S. life insurance industry paid out over $90 billion in death benefits in 2021
- The global life insurance market is expected to grow at a CAGR of 3.7% from 2023 to 2030
- In 2022, the number of life insurance policies in force worldwide reached approximately 3.2 billion
- The average life insurance premium worldwide increased to $480 in 2022
- The penetration rate of life insurance in India is around 3.2%, which is significantly lower than global averages
- In Africa, life insurance penetration remains below 2%, representing a significant growth opportunity
- In 2022, the top three life insurance companies by global market share were Ping An, China Life, and Allianz
- The total global premium income from life insurance in 2022 was estimated at around $2.3 trillion
- Life insurance benefits paid out in Asia-Pacific reached approximately $400 billion in 2021, with China leading the region
- The life insurance industry’s investment portfolios are estimated to hold over $4 trillion in assets, mainly in bonds and equities
- The number of life insurance policies in force in Latin America is around 600 million, with a projected annual growth rate of 4%
- The number of new life insurance policies issued in the US during 2022 was approximately 17 million, indicating steady market growth
- Life insurance companies worldwide held approximately $3.8 trillion in reserves as of 2022, ensuring solvency and capacity to pay future claims
Market Size and Value Interpretation
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