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Term Insurance Market

Term Insurance Market: Information by Type (Individual Level Term Life Insurance), Distribution Channel (Tied Agents and Branches), and Region — Forecast till 2030

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Market Snapshot

market snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
6.8 %
Fastest Growing Market:
Europe
Largest Market:
Asia-Pacific

The global term insurance market was valued at USD 854.20 billion in 2021. It is projected to reach USD 1,544.19 billion by 2030, growing at a CAGR of 6.8% during the forecast period (2022–2030). Term life insurance or term assurance is the insurance that provides coverage at a fixed rate of premium payments for a specific term. After the period expires, coverage at the previous premium rate is no longer guaranteed, and the customer must either forego coverage or potentially seek coverage at a higher premium rate or under different terms. Term insurance is often the most cost-effective approach to obtaining a substantial death benefit based on a coverage amount per premium dollar. The sale of life insurance policies constitutes the market for life insurance providers. The insurer offers to pay a selected beneficiary a sum of money in exchange for a premium following the death of an insured individual.

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Market Dynamics

Global Term Insurance Market Drivers

Growing Government Initiatives

Government initiatives and reform attempts in the insurance industry have substantially impacted the market in developed and developing nations. For example, the Australian government announced a series of improvements to the country's private health insurance. It was an effort to decrease prices, provide access to mental health care, and encourage younger individuals to purchase insurance. A premium discount of 2 to 10% per year has been implemented for those joining a health fund before 30. Similarly, the Indian government introduced Pradhan Mantri Jeevan Jyoti Bima Yojana, a term life insurance scheme, which increased insurance awareness.

Growth of Discretionary Income in Emerging Economies

The rise in discretionary spending in developing nations such as India and China is anticipated to fuel the global term life insurance market. According to a study by the Swiss Re Institute, the seven most important emerging markets in the world will account for 42% of global growth, with China accounting for 27% of that growth. This rise in disposable income, particularly in developing nations, is anticipated to increase the demand for term insurance policies.

Global Term Insurance Market Restraints

Lack of Knowledge of Life Insurance and Complicated Insurance Products

The market for life insurance providers is being held back by a lack of consumer understanding of life insurance and the complexities of various insurance packages. Many individuals have a propensity to invest their money in traditional investment vehicles because they are unaware of life insurance's benefits. According to the findings of a survey conducted by the Ph.D. Research Bureau, roughly 49% of Indians do not know insurance products, and roughly 57% are confused regarding term insurance. The global term insurance market is held due to a widespread lack of awareness and information.

Global Term Insurance Market Opportunities

Automation of Robotic Processes and Artificial Intelligence

Robotic process automation and AI are being utilized to improve customer service, more precisely anticipate outcomes, lead the creation of new products, identify hazards, and cross-promote products. Aditya Birla Sun Life Insurance has introduced DISHA 2.0, an upgraded version of their AI-enabled chatbot that can guide customers through selecting customized solutions for their life insurance needs. These technological advancements will lead to an improved customer experience, which will fuel market demand.

Segmental Analysis of the Global Term Insurance Market

The global term insurance market is segmented by type and distribution channels.

Based on type, the market is classified into individual level, group level, and decreasing term life insurance.

The individual-level term life insurance is the most lucrative segment of the global term insurance market. It is anticipated that the market for group-level term insurance will be the category with the highest growth rate in the future, with a CAGR of 14 %from 2022-2030.

Based on the distribution channel, the market is segmented into tied agents and branches, brokers, bancassurance, direct, and other channels.

The tied agents and branches segment dominates the global term insurance market. The bancassurance market is expected to grow at a CAGR of 16% during the forecast period.

Regional Analysis of the Global Term Insurance Market

The global term insurance market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

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Asia-Pacific is the largest shareholder in the global term insurance market. Due to many alterations to the regulatory framework, the life insurance sector is in for a transformative future. The potential uses for IoT in the Indian insurance industry go beyond telematics and risk assessment of clients. There are currently over 110 insurance technology start-ups operating in India. Europe will experience the fastest growth in the global term insurance market during the forecast period.

Competitive Players in the Global Term Insurance Market

MetLife, Aegon Life Insurance Company, Prudential Financial, Northwestern Mutual, State Farm, MassMutual Life Insurance Company, AIG, Lincoln National, John Hancock USA, China Life Insurance Company Limited, Bajaj Allianz Life Insurance, Life Insurance Corporation of India, HDFC Standard Life Insurance, ICICI Prudential Life Insurance, Kotak Life Insurance, Ping An Insurance (Group) of China Ltd., China Pacific Insurance (Group) Company Ltd, AXA Life Insurance Co., Ltd., FWD Fuji Life insurance Company, Limited, Medicare Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd., Allianz Life Insurance Japan Ltd., Tokio Marine & Nichido Life Insurance Co., Ltd., Liverpool Victoria, Scottish Widows, Aviva, Royal London, SCOR, CNP Assurances, Poste Vita, Standard Life, Vitality, Generali Assurances, Munich Re Insurance Unit Ergo, Intesa Sanpaolo Vita, Zurich, HBOS Financial Services, Rosgosstrakh, Sogaz Insurance Group, AlfaStrakhovanie Group, Powszechny Zaklad Ubezpieczen (PZU), UNIQA, ASKA Insurance Company, Brighthouse Financial (MetLife), Northwestern Mutual, New York Life, Lincoln National, MassMutual, John Hancock, Transamerica, Manulife Financial, Great-West Lifeco, Inc., Sun Life Financial, IA Financial Group, RBC Insurance, Empire Life, Companhia de seguros aliança do brasil, Bradesco Vida E Previdencia S.A, AR LIFE, MAPFRE Argentina, Crecer Seguros, Ohio National Seguros de Vida, MetLife UAE, Alliance Insurance (UAE), Mashreq bank (UAE), Buruj Cooperative Insurance (Saudi Arabia), Al Alamiya (Saudi Arabia), Menora Mivtachim Insurance, ABSA Insurance and Financial Advisers (Pty) Limited, Industrial and General Insurance Plc (IGI).

Recent Developments

  • June 2022- MetLife foundation directs corporate art funds to underserved creatives.
  • March 2022- Aegon Life, India’s leading digital life insurance company, has selected Legerity’s FastPost, a cloud-based Accounting Rules Platform, as a core component of its new real-time finance systems architecture.
  • April 2022- Prudential Financial completes sale to Empower of full-service retirement business.
  • May 2022- Northwestern Mutual Invests $5 Million in Black-led Financial Institutions to Accelerate Local Community and Economic Development.

Global Term Insurance Market: Segmentation

By Type

  • Group Level Term Life Insurance
  • Decreasing Term Life Insurance

By Distribution Channel

  • Tied Agents and Branches
  • Brokers
  • Bancassurance
  • Direct and Other Channels

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • LAMEA
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