Life insurance - Eastern Asia | Statista Market Forecast

The projected market size (gross written premium) of the Life insurance market market in Eastern Asia is expected to reach US$836.70bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is estimated to be US$511.90.
Looking ahead, the gross written premium is forecasted to exhibit an annual growth rate (CAGR 2024-2029) of -0.40%.
This growth is anticipated to result in a market volume of US$820.00bn by 2029.
In terms of global comparison, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
In Eastern Asia, the life insurance market in Japan is experiencing a shift towards digitalization, with insurers increasingly offering online services and mobile apps to attract tech-savvy customers.

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 Eastern Asia is experiencing significant growth and evolution.

Customer preferences: Customers in Eastern Asia are increasingly seeking comprehensive life insurance products that offer not only financial protection but also investment opportunities. There is a growing demand for policies that provide not just coverage in case of unforeseen events, but also options for savings and wealth accumulation.

Trends in the market: In Japan, the life insurance market is seeing a shift towards digitalization, with more customers opting to purchase policies online. This trend is driven by the convenience and accessibility of digital platforms. In South Korea, there is a rising interest in retirement-focused life insurance products as the population ages and individuals seek financial security in their later years. China, on the other hand, is experiencing a surge in demand for health-related life insurance policies, reflecting growing concerns about healthcare costs and access to quality medical services.

Local special circumstances: In Taiwan, the government's policies and regulations play a significant role in shaping the life insurance market. The emphasis on consumer protection and product transparency has led to a more cautious approach from insurance providers, focusing on offering reliable and trustworthy products to customers. In Hong Kong, the market is influenced by its status as an international financial hub, attracting a diverse range of insurance products tailored to the needs of a cosmopolitan population.

Underlying macroeconomic factors: The economic growth and rising disposable income in Eastern Asia are driving the expansion of the life insurance market. As individuals become more affluent, they are increasingly looking for ways to secure their financial future and protect their assets. Additionally, demographic shifts, such as aging populations and changing family structures, are creating new opportunities for life insurance providers to offer innovative products that cater to evolving customer needs.

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.