Life insurance - Europe | Statista Market Forecast

The Life insurance market market in Europe is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach an impressive US$914.50bn in 2024.
This indicates a substantial increase in the demand for Life insurance market products and services across the region.
Furthermore, the average spending per capita in the Life insurance market market is estimated to be US$1.08k in 2024.
This figure demonstrates the willingness of individuals in Europe to invest in Life insurance market coverage, highlighting the importance of financial protection and security.
Looking ahead, the Life insurance market market is anticipated to experience a steady annual growth rate of -0.50% between 2024 and 2029.
This sustained growth is expected to result in a market volume of US$892.00bn by 2029.
Such a substantial market volume reflects the strong market potential and promising opportunities that lie ahead for the Life insurance market industry in Europe.
In comparison to other countries globally, the United States is projected to generate the highest gross written premium in 2024, reaching a staggering US$1.3tn.
This highlights the significant market dominance of the United States in the global Life insurance market industry.
With these remarkable numbers and projections, it is evident that the Life insurance market market in Europe is poised for substantial growth and presents a lucrative opportunity for insurers and industry players.
In Germany, the life insurance market is experiencing a shift towards more flexible and customizable policies to meet the diverse needs of consumers.

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

In Europe, the Life insurance market is experiencing significant growth and development, driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the European Life insurance market are shifting towards more personalized and flexible insurance products. Customers are increasingly seeking tailored solutions that meet their specific needs and offer additional benefits such as investment options or savings components. This trend is driven by a growing awareness of the importance of financial planning and security, as well as a desire for more control over their insurance coverage. Trends in the European Life insurance market are also shaped by regulatory changes and advancements in technology. Insurers are leveraging digital platforms to enhance customer experience, streamline processes, and offer innovative products. Additionally, there is a growing trend towards sustainable and socially responsible investing, leading to the development of ESG (Environmental, Social, and Governance) integrated insurance products. Local special circumstances in European countries further influence the Life insurance market dynamics. For instance, in countries with aging populations such as Germany and Italy, there is a higher demand for retirement planning and long-term care insurance. On the other hand, in emerging markets in Eastern Europe, there is a growing middle class seeking protection and investment opportunities through Life insurance products. Underlying macroeconomic factors play a crucial role in shaping the European Life insurance market. Economic stability, interest rates, and regulatory environment impact the growth and profitability of insurers. Low-interest rates in the Eurozone have led insurers to adjust their product offerings and investment strategies to maintain profitability. Economic growth, inflation rates, and demographic trends also influence the demand for Life insurance products across different European countries. Overall, the Life insurance market in Europe is evolving to meet the changing needs and preferences of customers, driven by technological advancements, regulatory developments, and macroeconomic conditions. Insurers are adapting their strategies to remain competitive in a dynamic and fast-paced market environment.

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.