Life insurance - United States | Statista Market Forecast

The Life insurance market market in the United States is projected to reach a market size (gross written premium) of US$1.29tn in 2024.
The average spending per capita in the Life insurance market market is estimated to be US$3.77k in 2024.
It is expected that the gross written premium will show an annual growth rate (CAGR 2024-2029) of 3.65%, resulting in a market volume of US$1.54tn 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 US$1.29tn in 2024.
The United States is experiencing a shift towards digital platforms and online sales in the life insurance market.

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

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.

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.