Life insurance - Australia & Oceania

The Life insurance market market in Australia & Oceania is projected to reach a market size (gross written premium) of US$32.18bn in 2024.
On average, individuals in the region are expected to spend US$740.90 per capita in the Life insurance market market in the same year.
The market is projected to grow at an annual rate of 0.97% (CAGR 2024-2029), resulting in a market volume of US$33.77bn by 2029.
In comparison to other countries worldwide, the United States is anticipated to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
Australia is experiencing a growing trend in life insurance as consumers prioritize financial security and protection for their families.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in Australia & Oceania is experiencing significant growth and development. Customer preferences in the region are shifting towards more comprehensive life insurance coverage, including options for critical illness, disability, and retirement planning. Customers are increasingly looking for tailored insurance solutions that provide financial security for themselves and their families in the long term. Trends in the market show a rise in the adoption of digital channels for purchasing life insurance policies. Insurers are leveraging technology to streamline the application process, improve customer experience, and offer more personalized products. Additionally, there is a growing interest in sustainable and ethical investment options within life insurance policies, reflecting a broader global trend towards responsible investing. Local special circumstances in Australia & Oceania, such as the diverse regulatory environment across different countries in the region, are influencing the life insurance market. Insurers are navigating varying compliance requirements and consumer protection laws, which can impact product offerings and distribution strategies in each market. Additionally, the cultural diversity of the region presents opportunities for insurers to tailor their products to specific demographic segments. Underlying macroeconomic factors, such as population growth, increasing disposable income, and changing demographics, are driving the growth of the life insurance market in Australia & Oceania. As the middle-class population expands and aging populations seek financial protection, there is a growing demand for life insurance products that cater to different life stages and financial goals. Economic stability and regulatory reforms also play a crucial role in shaping the competitive landscape and market dynamics in the region.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.