What Is The Current and Historic Market Size Analysis Of The Annuity Market?
The annuity market has seen considerable growth due to a variety of factors.
• The size of the annuity market has been expanding significantly in recent times. It is projected to increase from $6.08 $ billion in 2024 to $6.45 $ billion in 2025, with a compound annual growth rate (CAGR) of 6.2%.
Factors contributing to the growth during the historical period include a rise in life expectancy, an increase in disposable income, concerns over the solvency of social security, a growing number of retirees, and an increment in the number of financial advisors.
What are the Market Size and Expected Growth Rates for the Annuity Market in the Coming Years?
The annuity market is expected to maintain its strong growth trajectory in upcoming years.
• We anticipate substantial expansion in the annuity market size in the upcoming years, projected to reach $8.12 billion by 2029 at a CAGR of 5.9%.
This estimated growth during the forecast period can be credited to several factors such as the increasing elderly population, the rising use of digital platforms, the growing demand for variable annuities, escalating healthcare expenses impacting retirement plans, and continual innovation in annuity product lines. Important trends during this period are expected to be technological advancements, the use of blockchain technology, digital annuity platforms, hybrid annuity products, and robo-advisors.
What Are The Core Factors Supporting Growth In The Annuity Market?
The exponential growth of the annuity market is anticipated to be fueled by the escalating demand for insurance. The need for insurance is heightening given the increased cognizance of financial protection, growing uncertainties, and the necessity to shield oneself from an array of risks such as health, life, property, and disruptions in business. Annuities, utilized in insurance to offer policyholders a guaranteed flow of income, typically after retirement, ensure long-term financial security. For example, Allianz SE, a German-based financial services firm, reported a remarkable growth of 7.5% in the global insurance industry in May 2023. This marked its highest growth since before the Global Financial Crisis. Premiums generated by insurers worldwide across diverse segments reached €6.2 trillion ($6.7 trillion), with life insurance at €2,620 billion ($2,835 billion), property and casualty at €2,153 billion ($2,329 billion), and health insurance at €1,427 billion ($1,545 billion). Consequently, the increasing demand for insurance is catalyzing the growth of the annuity market.
What Are The Key Segments Within The Global Annuity Market?
The annuitymarket covered in this report is segmented –
1) By Type: Immediate Annuities, Deferred Annuities, Fixed Annuities, Variable Annuities
2) By Distribution Channel: Insurance Agencies And Brokers, Banks, Other Distribution Channels
3) By Application: Child, Adult, Elder
Subsegments:
1) By Immediate Annuities: Single Premium Immediate Annuities (SPIA), Periodic Payment Immediate Annuities, Life-Only Immediate Annuities, Joint and Survivor Immediate Annuities
2) By Deferred Annuities: Fixed Deferred Annuities, Variable Deferred Annuities, Fixed Indexed Deferred Annuities, Multi-Year Guarantee Annuities (MYGA)
3) By Fixed Annuities: Fixed-Rate Annuities, Fixed Indexed Annuities, Immediate Fixed Annuities, Deferred Fixed Annuities
4) By Variable Annuities: Variable Annuities With Equity Investment Options, Variable Annuities with Bond Investment Options, Indexed Variable Annuities, Guaranteed Minimum Withdrawal Benefit (GMWB) Variable Annuities.
Pre-Book The Annuity Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
How Are New Trends Impacting The Size Of The Annuity Market?
Leading companies in the annuity market are concentrating on creating innovative products, such as long-term, tax-deferred retirement products, to maintain a competitive advantage. A long-term tax-deferred retirement solution is a financial tool created to assist people in saving and investing for retirement, postponing taxes on the increase of their investment till they commence withdrawals. These solutions are designed to amass funds over a prolonged phase, providing compounded growth without immediate tax consequences. For example, in May 2024, the Guardian Life Insurance Company of America, an insurance corporation based in the US, introduced a novel financial service identified as Guardian MarketPerform, a Registered Index-Linked Annuity (RILA). This service is tailored to provide a harmony between growth possibility and protection from market uncertainties, addressing the rising apprehensions many Americans have regarding their retirement savings.
Who Are the Key Players In The Annuity Market?
Major companies operating in the annuity market are:
• New York Life Insurance Company
• TIAA-CREF Life Insurance Company
• Massachusetts Mutual Life Insurance Company
• USAA Life Insurance Company
• Corbridge Financial
• Lincoln National Life Insurance Company
• Pacific Life Insurance Company
• Jackson National Life Insurance Company
• Athene Annuity and Life Company
• Brighthouse Financial Inc.
• Western & Southern Life Assurance Company
• F&G Annuities & Life Inc.
• Allianz Life Insurance Company of North America
• ICICI Prudential Life Insurance Company Limited
• Ameritas Life Insurance Corporation of New York
• American National Insurance Company
• Global Atlantic Financial Group
• Atlantic Coast Life Insurance Company
• Securian Life Insurance Company
• OneAmerica Financial Partners Inc.
• Aspida Life Insurance Company
• CL Life and Annuity Insurance Company
• Clear Spring Life and Annuity Company
• Nationwide Mutual Insurance Company
What Are The Regional Insights Into The Annuity Market?
North America was the largest region in the annuity market in 2024. The regions covered in the annuity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
