While countless salespeople chase shrinking opportunities, the global life insurance industry quietly surpassed $2.88 trillion in premiums last year, driven by a wave of digital adoption and an urgent focus on family security.
Key Takeaways
- The U.S. individual life insurance new premium sales reached $14.8 billion in 2023, a 4% increase from 2022 driven by term life policies.
- Global life insurance premiums grew by 5.1% in 2022 to $2.88 trillion, with emerging markets contributing 40% of the growth.
- U.S. life/annuity sector assets under management hit $8.1 trillion as of Q3 2023, up 7.2% year-over-year.
- U.S. individual life insurance annualized new premium sales totaled $17.5 billion in Q1 2024.
- Term life insurance accounted for 42% of total U.S. life sales by premium in 2023.
- Whole life sales declined 8% to $5.9 billion in U.S. 2023 amid high interest rates.
- U.S. millennial life insurance purchase rate hit 45% ownership in 2023 survey.
- 54% of U.S. Gen X adults own life insurance, averaging $250,000 coverage in 2023.
- Women represent 52% of new U.S. life insurance policy buyers in 2023.
- Term life 51%, whole life 25% of U.S. individual policies in force 2023.
- Independent agents distribute 38% of U.S. life insurance sales by premium 2023.
- Universal life products comprised 22% of U.S. new annualized premium 2023.
- U.S. life insurance penetration rate 54% of adults in 2023.
- Asia-Pacific life insurance market share 38% of global premiums 2022.
- U.S. represents 25% of world life insurance premiums $700B in 2022.
Global life insurance sales are growing, led by emerging markets and digital adoption.
Consumer Demographics and Behavior
- U.S. millennial life insurance purchase rate hit 45% ownership in 2023 survey.
- 54% of U.S. Gen X adults own life insurance, averaging $250,000 coverage in 2023.
- Women represent 52% of new U.S. life insurance policy buyers in 2023.
- 62% of U.S. parents with minor children have life insurance, up from 55% in 2020.
- African American U.S. households life insurance ownership at 44% in 2023, coverage gap $500k avg.
- Hispanic U.S. consumers 41% life insurance penetration, prefer term products 2023.
- U.S. baby boomers hold 48% of total life insurance face amounts in 2023.
- 37% of U.S. unmarried adults under 50 have no life insurance in 2023 survey.
- High-income U.S. households ($100k+) 72% life insured vs 39% low-income 2023.
- U.S. Gen Z life insurance ownership rose to 28% in 2023 from 21% 2020.
- 65% of U.S. married couples carry joint life policies in 2023.
- Smokers pay 50-75% higher premiums, yet 12% of U.S. policyholders smoke 2023.
- U.S. self-employed individuals 51% have life insurance, avg coverage $300k 2023.
- 58% of U.S. homeowners have adequate life coverage tied to mortgage 2023.
- LGBTQ+ U.S. adults life insurance ownership at 49%, facing 20% higher rates 2023.
- U.S. average age of life insurance buyer is 44 years in 2023.
- 71% of U.S. business owners have life insurance for key person coverage 2023.
- Rural U.S. residents 55% life insured vs 62% urban in 2023 survey.
- U.S. college graduates 68% life insurance ownership vs 42% non-grads 2023.
- 46% of U.S. divorced individuals maintain life insurance post-divorce 2023.
- Veterans in U.S. have 59% life coverage rate, avg $400k face 2023.
- U.S. gig economy workers 32% insured, protection gap $1M avg 2023.
- Women-led households U.S. 47% life insured, prioritizing child coverage 2023.
- 67% of U.S. physicians carry life insurance, highest among professions 2023.
- Empty nesters U.S. review life policies at 78% rate post-kids leave 2023.
- U.S. 35-44 age group buys 29% of all new life policies in 2023.
- Diabetics face 2-3x premiums, yet 8% of U.S. insured have condition 2023.
Consumer Demographics and Behavior Interpretation
While Millennials are finally catching up to Gen X in buying life insurance, the real story is a national patchwork of protection where having kids, a mortgage, or a degree makes you far more likely to be covered than if you're single, self-employed, or just trying to afford the premiums.
Market Size and Growth
- The U.S. individual life insurance new premium sales reached $14.8 billion in 2023, a 4% increase from 2022 driven by term life policies.
- Global life insurance premiums grew by 5.1% in 2022 to $2.88 trillion, with emerging markets contributing 40% of the growth.
- U.S. life/annuity sector assets under management hit $8.1 trillion as of Q3 2023, up 7.2% year-over-year.
- The life insurance market in India expanded to $102 billion in premiums in FY2023, registering 12% growth amid digital adoption.
- European life insurance gross written premiums totaled €1.2 trillion in 2022, with a 3.8% CAGR projected through 2027.
- U.S. group life insurance premiums written amounted to $18.5 billion in 2022, growing 2.1% annually.
- China's life insurance market premiums surged 7.2% to 3.1 trillion yuan in 2023, led by health-linked products.
- The UK life insurance sector recorded £278 billion in new business premiums in 2022, up 8% from prior year.
- Brazilian life insurance premiums grew 10.5% to R$85 billion in 2022, boosted by pension products.
- Australian life insurance in-force premiums reached AUD 48 billion in 2023, with 4.3% growth.
- U.S. life insurance direct premiums written increased to $1.05 trillion in 2022, a 3.9% rise.
- Japan's life insurance premiums contracted 1.2% to ¥38 trillion in FY2022 due to low interest rates.
- South African life insurance market size hit ZAR 650 billion in 2023, growing at 6.8% CAGR since 2018.
- Canadian life insurance premiums totaled CAD 85 billion in 2022, up 4.7%.
- Singapore life insurance premiums rose 9.1% to SGD 15.2 billion in 2022.
- U.S. term life insurance market valued at $150 billion in annualized new premium in 2023.
- German life insurance new business volume reached €120 billion in 2022, +2.5% YoY.
- Mexico life insurance premiums grew 11% to MXN 250 billion in 2023.
- French life insurance savings contracts hit €1.9 trillion in assets end-2022.
- U.S. whole life insurance premiums reached $12.3 billion in new sales Q4 2023.
- Global reinsurance life premiums stood at $250 billion in 2022, +5% growth.
- Italian life insurance premiums totaled €150 billion in 2022, driven by unit-linked products.
- U.S. life settlements market volume was $4.1 billion in 2023 policies.
- Thailand life insurance premiums increased 7.4% to THB 450 billion in 2023.
- Projected U.S. life insurance market to reach $1.5 trillion by 2028 at 4.5% CAGR.
- Dutch life insurance premiums grew 3.2% to €75 billion in 2022.
- U.S. indexed universal life sales hit $5.2 billion in 2023.
- Global bancassurance life premiums accounted for 52% of total in 2022.
- Spanish life insurance market expanded to €85 billion premiums in 2022.
- U.S. final expense life insurance sales volume reached $2.8 billion in 2023.
Market Size and Growth Interpretation
Amidst a global chorus of growth, with emerging markets humming a lively tune and even term life having a modest solo, the undeniable truth is that while markets may ebb and flow, the universal human need for financial security ensures the life insurance industry's ledger is always, quite seriously, in the black.
Product Types and Distribution Channels
- Term life 51%, whole life 25% of U.S. individual policies in force 2023.
- Independent agents distribute 38% of U.S. life insurance sales by premium 2023.
- Universal life products comprised 22% of U.S. new annualized premium 2023.
- Wirehouses sold $7.5 billion in life insurance, 15% market share U.S. 2023.
- Group universal life (GUL) face amounts averaged $250k per policy U.S. 2023.
- Direct-to-consumer channels captured 12% of term life sales U.S. 2023.
- Variable life products 8% of total U.S. sales, $2.1B premium 2023.
- Captive agents hold 45% U.S. life market share by policies issued 2023.
- Indexed products (IUL/IWL) 35% of permanent life sales U.S. 2023.
- Bancassurance channels grew to 28% of U.S. life sales volume 2023.
- Simplified issue term life 19% of term conversions U.S. 2023.
- RIA advisors placed $3.2 billion life insurance for clients 2023 U.S.
- No-lapse guarantee UL policies 14% of UL sales U.S. 2023.
- Worksites distributed 22 million supplemental life policies U.S. 2023.
- Hybrid life/LTC products sales $1.9B, 11% permanent market U.S. 2023.
- IMOs/IMAs channeled 25% of independent agent life sales U.S. 2023.
- Return-of-premium term (ROP) 7% of term sales U.S. 2023.
- FSAs/FMOs grew 18% in life insurance production U.S. 2023.
- Child term riders attached to 32% of family policies U.S. 2023.
- Digital platforms sold 450k policies, avg $50k face U.S. 2023.
- Key person insurance 6% of business-owned life U.S. 2023.
- Accelerate death benefit riders in 88% of new policies U.S. 2023.
- P&C agents cross-sold 15% more life policies in 2023 U.S.
- Buy-sell funded policies avg $2M face for SMBs U.S. 2023.
- Waiver of premium riders 65% penetration in employer group life 2023.
- Overloan protection riders up 40% usage in UL policies 2023 U.S.
- Embedded insurance in banking apps 9% life sales share U.S. 2023.
Product Types and Distribution Channels Interpretation
The American life insurance market is a sprawling, multi-channel ecosystem where term insurance dominates policies but permanent products chase premiums, independent agents battle captives for influence, and riders have become so ubiquitous that a policy without one feels like a car sold without wheels.
Regional and Global Statistics
- U.S. life insurance penetration rate 54% of adults in 2023.
- Asia-Pacific life insurance market share 38% of global premiums 2022.
- U.S. represents 25% of world life insurance premiums $700B in 2022.
- Western Europe life density €3,200 per capita in 2022 highest globally.
- Latin America life insurance penetration 2.8% of GDP vs global 3.1% 2022.
- Middle East life premiums grew 12% to $45B in 2022 regionally.
- Africa life insurance market $20B premiums, penetration <1% GDP 2022.
- North America 30% global life reinsurance ceded premiums 2022.
- China 18% world life market, $550B premiums 2022 fastest growth.
- Japan life insurance 7% global share, $350B premiums stable 2022.
- India life premiums $90B, 4th largest emerging market 2023.
- UK 4% global life market €250B, high savings focus 2022.
- Australia life insurance 1.2% GDP penetration highest APAC 2023.
- Canada life assets CAD 1T, 85% invested domestically 2022.
- Brazil 60% Latin America life market R$80B premiums 2022.
- Germany €250B life premiums, 20% EU market leader 2022.
- South Korea life density $4,500 per capita top 5 global 2022.
- France €300B unit-linked life 45% total EU 2022.
- South Africa 70% Africa life premiums ZAR 500B 2023.
- Singapore life penetration 8% GDP highest Asia 2022.
- Mexico life premiums MXN 200B, 40% LatAm growth driver 2023.
- Netherlands €100B life savings, 90% linked to pensions 2022.
- Taiwan life premiums NT$1.2T, 5% global share 2022.
- Italy €140B life premiums, 80% protection gap remains 2022.
- UAE life insurance grew 15% to AED 20B, expat driven 2023.
- Russia life market €15B, sanctions impacted 5% decline 2022.
Regional and Global Statistics Interpretation
The global life insurance market paints a picture of vast, ingrained preparedness in the wealthy West and vibrant growth in Asia, yet it also reveals a sobering map of under-protected populations whose potential remains largely untapped.
Sales Performance and Trends
- U.S. individual life insurance annualized new premium sales totaled $17.5 billion in Q1 2024.
- Term life insurance accounted for 42% of total U.S. life sales by premium in 2023.
- Whole life sales declined 8% to $5.9 billion in U.S. 2023 amid high interest rates.
- Indexed universal life (IUL) sales surged 28% to $3.8 billion in 2023 U.S. market.
- U.S. life insurance policies issued increased 1.2% to 14.5 million in 2023.
- Group term life sales rose 6% to $1.2 billion quarterly average in 2023 U.S.
- Universal life sales dropped 15% YoY to $2.1 billion in Q4 2023 U.S.
- Online life insurance sales grew 25% in 2023, representing 18% of total U.S. policies.
- U.S. variable universal life sales rebounded 12% to $1.8 billion in 2023.
- Final expense whole life sales increased 5% to $3.2 billion in U.S. 2023.
- Corporate-owned life insurance (COLI) sales hit $4.5 billion in premiums 2022 U.S.
- U.S. life insurance lapse rates averaged 4.8% in 2023, down from 5.2% prior year.
- Indexed whole life sales grew 22% to $450 million in U.S. 2023.
- U.S. broker-dealer life sales volume reached $2.9 billion in 2023.
- Term conversions to permanent life rose 9% in 2023 U.S. market.
- U.S. life insurance average face amount per policy was $185,000 in 2023.
- Multi-life sales through worksite programs increased 7% to $1.1 billion in 2023.
- U.S. IUL sales per agent averaged $1.2 million in premium in 2023 top quartile.
- Renewal premiums grew 3.5% to $1.1 trillion in U.S. life insurance 2023.
- U.S. life insurance sales via video conferencing jumped 35% in 2023.
- Flexible premium adjustable life sales fell 10% to $800 million U.S. 2023.
- U.S. average commission per life policy sold was $650 in 2023.
- Policy persistency rates for whole life reached 92% after year 3 in 2023 U.S.
- U.S. life sales to high-net-worth individuals grew 11% to $6.2 billion 2023.
- Endowment life sales declined 20% to $1.5 billion in U.S. 2023.
- U.S. life insurance close rates improved to 28% from 24% in 2022.
- Single premium immediate annuities coupled with life sales up 15% 2023.
Sales Performance and Trends Interpretation
Americans are still buying life insurance with fervor, but they're shrewdly shifting their bets towards flexible, growth-linked policies while keeping a watchful eye on their wallets and an open browser tab.
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