Life insurance - United Kingdom

United Kingdom

The Life insurance market market in the United Kingdom is projected to reach a market size (gross written premium) of €210.50bn in 2024.
On average, individuals in the United Kingdom are expected to spend €3.10k per capita on Life insurance market in 2024.
The gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -3.31%, resulting in a market volume of €177.90bn by 2029.
In comparison to other countries worldwide, the United States is expected to generate the highest gross written premium of €1,195.0bn in 2024.
The United Kingdom's life insurance market is experiencing a shift towards digitalization, with insurers increasingly offering online policy purchases and personalized digital customer experiences.

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Analyst Opinion

The United Kingdom's Life insurance market is experiencing significant growth and evolution.

Customer preferences: Customers in the United Kingdom are increasingly seeking personalized life insurance products that cater to their specific needs and lifestyles. There is a growing demand for policies that offer flexibility, such as customizable coverage options and the ability to adjust premiums over time. Additionally, there is a rising interest in digital solutions that provide convenience and accessibility for policy management.

Trends in the market: One notable trend in the UK's life insurance market is the shift towards more transparent and simplified products, driven by regulatory changes and increasing competition. Insurers are focusing on enhancing customer experience through streamlined processes and clear communication of policy terms. Moreover, there is a growing emphasis on sustainable and socially responsible investing within life insurance products, aligning with the broader global trend towards ESG considerations.

Local special circumstances: The UK's life insurance market is unique due to its mature and competitive landscape, with a wide range of traditional and digital insurers vying for market share. The presence of established insurance providers alongside innovative insurtech companies creates a dynamic environment for product development and distribution. Additionally, the regulatory framework in the UK plays a crucial role in shaping industry practices and consumer protection standards.

Underlying macroeconomic factors: The development of the life insurance market in the United Kingdom is influenced by various macroeconomic factors, including interest rates, inflation, and economic growth. Low interest rates have led insurers to adapt their investment strategies and product offerings to maintain profitability in a low-yield environment. Economic conditions and demographic trends also play a significant role in shaping the demand for life insurance products, as individuals seek financial security and protection for their families in an uncertain world.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.