Life insurance - United States

United States

The Life insurance market market in the United States is projected to reach a market size (gross written premium) of €1.20tn in 2024.
The average spending per capita in the Life insurance market market is estimated to be €3.50k in 2024.
It is expected that the gross written premium will show an annual growth rate (CAGR 2024-2029) of 3.71%, resulting in a market volume of €1.44tn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium in the Life insurance market market, amounting to €1.20tn in 2024.
The United States is experiencing a shift towards digital platforms and online sales in the life insurance market.

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Analyst Opinion

Over the past few years, the Life insurance market in United States has witnessed significant growth and evolution.

Customer preferences: Customers in the United States have shown a growing interest in customizable life insurance products that cater to their specific needs and lifestyles. There is a notable shift towards policies that offer flexibility in coverage and benefits, reflecting a desire for personalized financial planning solutions.

Trends in the market: One prominent trend in the United States life insurance market is the increasing popularity of digital platforms for purchasing policies and managing insurance portfolios. Insurers are leveraging technology to streamline processes, enhance customer experience, and reach a wider audience. Additionally, there is a rising demand for sustainable and socially responsible insurance products, aligning with the growing focus on environmental and social issues among consumers.

Local special circumstances: The regulatory environment in the United States plays a significant role in shaping the life insurance market. With stringent compliance requirements and state-specific regulations, insurers must navigate a complex landscape to ensure compliance and meet the diverse needs of customers across different states. Moreover, the competitive nature of the market drives insurers to innovate constantly and differentiate their offerings to stay ahead.

Underlying macroeconomic factors: The overall economic landscape and demographic trends in the United States also influence the life insurance market. Factors such as interest rates, employment levels, and income growth impact consumer purchasing power and willingness to invest in life insurance. Demographic shifts, such as an aging population and changing family structures, drive the need for various types of life insurance products tailored to different life stages and financial goals. Additionally, economic uncertainties and market volatility can influence risk perceptions and fuel demand for protection through life insurance policies.

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.