What Is The Overview Of The Global Annuity Insurance Market?
Annuity insurance is a financial product offered by insurance companies that provides a series of payments made at equal intervals. These payments can be made either immediately or at some future date, depending on the terms of the annuity contract. he primary purpose of an annuity is to provide a steady income stream, typically for retirees.
Annuity Insurance Global Market Report 2024 provides data on the global annuity insurance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The annuity insurance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Forecasted Market Size And Growth Rates For Global Annuity Insurance ?
The market size has experienced robust growth in recent years, increasing from $936.97 billion in 2023 to $990.4 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. This growth can be attributed to advancements in digitalization, reduced operational and administrative costs, competitive pricing strategies, increased internet penetration, and a shift from traditional to modern services. The market is expected to expand further, reaching $1,242.69 billion by 2028 at a CAGR of 5.8%. Key factors driving this growth include higher mobile and internet usage, greater convenience in purchasing services online, rising awareness of the benefits of coverage, and enhanced accessibility. Emerging trends include the adoption of Internet of Things technologies, demand for customized products, advancements in mobile apps and AI technologies, and a transition from product-based to consumer-centric approaches within the industry.
What Factors Are Driving Growth In The Annuity Insurance Market?
The growing number of individuals looking for retirement income solutions is expected to drive the growth of the annuity insurance market. Retirement income solutions include financial products and strategies aimed at providing a consistent and reliable income stream during retirement, ensuring financial stability. Annuity insurance helps retirees by converting a lump-sum payment into regular payments over a set period, thereby preventing financial uncertainty. For instance, according to a survey conducted by J.P. Morgan in 2024, 72% of participants found guaranteed income options appealing, and 85% said retirement benefits influenced their decision to stay with or leave an employer. Thus, the increasing demand for retirement income solutions is contributing to the expansion of the annuity insurance market.
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What Are The Main Segments Of The Global Annuity Insurance Market?
The annuity insurance market covered in this report is segmented –
1) By Type: Fixed Annuity Insurance, Variable Annuity Insurance, Indexed Annuity Insurance, Other Types
2) By Application: Financial, Manufacturing, Industrial, Travel And Hospitality, Other Applications
3) By Distribution Channel: Insurance Agencies And Brokers, Banks, Other Distribution Channels
What Emerging Trends Are Influencing The Growth Of The Annuity Insurance Market?
Leading companies in the annuity insurance sector are prioritizing product innovations to meet the varied needs of customers, whether for individual or group general annuity savings. These savings plans offer flexible premium payment options, including single payments, limited payment terms, or regular premium schedules. For example, in January 2024, Max Life Insurance Company Limited, an insurance provider based in India, introduced the 'Smart Wealth Annuity Guaranteed Pension Plan' (SWAG Pension Plan). This non-linked, non-participating plan enables customers to customize their policies with multiple annuity and 'Return of Premium' options. Designed to help individuals prepare for retirement, the plan includes features like flexible annuity choices and return options, subject to policy conditions.
What Is The Largest Region In The Annuity Insurance Market?
North America was the largest region in the annuity insurance market in 2023. The regions covered in the annuity insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
