U.S. Life Insurance Market Revenue to Attain USD 4.37 Trn by 2033

10 Dec 2024

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Table of Content

1. U.S. Life Insurance Market Revenue and Trends 2023 to 2033 2. Market Overview 3. Report Highlights of U.S. Life Insurance Market 4. U.S. Life Insurance Market Trends 5. U.S. Life Insurance Market Coverage 6. U.S. Life Insurance Market Key Players 7. Market News 

U.S. Life Insurance Market Revenue and Trends 2023 to 2033

The U.S. life insurance market revenue was valued at USD 1.93 trillion in 2024 and is expected to attain around USD 4.37 trillion by 2033, growing at a CAGR of 9.45% during the forecast period. The market is driven by the increasing disposable income and rising demand for personalized insurance products.

Market Overview

The life insurance market revolves around the purchasing, selling, and managing of life insurance policies and agreements between an insurance company and the policyholder. The company pays a sum of money in exchange for a premium, upon the death of an insured person. Life insurance includes various plans such as variable life, whole life, universal life, and term life insurance. In case of the death of the policyholder, life insurance provides financial security to the beneficiary.

The rising disposable income of individuals is a major factor boosting the growth of the market. Disposable income allows individuals to spend on insurance products to secure their future. The rising awareness among individuals about the benefits of life insurance in securing a family’s future also contributes to market expansion. Moreover, there is a high demand for customized insurance products, especially lower premiums among low or middle-income individuals. With the growing prevalence of diseases and the rising awareness about health and wellness, the demand for life insurance is rising, contributing to market growth.

Report Highlights of U.S. Life Insurance Market

• By type, the annuity premiums & deposits segment led the market in 2023. This is mainly due to the rising awareness about the importance of retirement planning and securing the future and financial stability. Moreover, regulatory frameworks that guarantee consumer safety and provide tax advantage bolstered the segmental growth. On the other hand, the accident & health premiums segment is expected to grow at the fastest rate during the forecast period, as they pay benefits to the insured for treating injuries and disease disability. It covers overall treatment costs, including surgical and hospital stay costs. The rising instances of accidental injuries is likely to contribute to segmental growth.  

U.S. Life Insurance Market Trends

• Expansion of Insuretech Companies: The rising number of insure tech companies is a major factor that drives the growth of the market in the coming years. Insuretech companies focus on developing technologies to simplify everything from creating policies to managing claims. Moreover, the rising collaborations between insurance companies and tech companies to develop advanced solutions contribute to market growth. For instance, in September 2024, F&G Annuities & Life, Inc., a leading U.S. provider of insurance solutions serving retail annuity and life customers and institutional clients, collaborated with Accenture to enhance F&G’s technology platform capabilities to optimize and scale operations for future growth through the utilization of Accenture’s Life Insurance and Annuity Platform (ALIP).
• Technological Advancements: Advancements in technology play a significant role in fueling the U.S. life insurance market growth. Advancements in technology led to the development of digital platforms and mobile apps that allow seamless communication between an insurance company and its customers. These apps eliminate paperwork and automate tedious manual processes. They also enable quick and more precise handling of insurance claims and client queries. Several insurance companies are also focusing on developing user-friendly online platforms and mobile apps that make it easier for individuals to manage their premiums on time. Moreover, incorporating AI algorithms in digital platforms automates underwriting process more precisely within less time. For instance, in October 2024, ServiceNow, Inc., an American software company, and LTIMindtree entered into a partnership and launched the ‘AI-Smart Underwriter’ solution to empower underwriters to make more informed, data and AI-driven decisions while driving efficiency through intelligent automation.
• Rising Awareness of Financial Planning: With the rising awareness about the importance of financial planning and protection against unexpected events, the demand for life insurance products is increasing, thus driving market growth.

U.S. Life Insurance Market Coverage

U.S. Life Insurance Market Key Players

• AXA Group
• China Life Insurance Company
• Chubb Limited
• Cigna
• MetLife, Inc.
• New York Life Insurance Company
• Northwestern Mutual
• United Health Group
• Prudential Financial
• Ping An Insurance Group

Market News 

• In October 2024, LexisNexis Risk Solutions introduced LexisNexis Life Smart Path, a scalable, flexible evidence-ordering solution that offers U.S. life insurers data and advanced analytics insights earlier in the life application and underwriting processes, enabling more timely decisions and more complete risk assessment.
• In September 2024, Munich Re North America Life announced a new offering, longevity reinsurance, to help these clients manage biometric risk while accumulating assets. Clients can pass on longevity risk by converting uncertain future pension or annuity payments into a fixed cash flow stream, locking in mortality assumptions and a fee at inception.

Market Segmentation

By Type

• Life Insurance Premiums
• Annuity Premiums & Deposits
• Accident & Health Premiums
• Others

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