How Has the Equity Indexed Life Insurance Market Evolved Historically and What is its Current Size?
The equity indexed life insurance market has seen considerable growth due to a variety of factors.
• The market size for equity indexed life insurance has experienced a swift increase in the past few years. Its growth is expected to accelerate from $3.99 billion in 2024 to $4.55 billion in 2025, experiencing a compound annual growth rate (CAGR) of 13.9%.
This growth during the historical period can be linked to factors such as product diversification and customization, increasing demand for cash value growth, expansion in the market, a competitive market environment, the reaction to low-interest rates, and the advancement of indexed products.
What is the Forecasted Market Size and CAGR for the Equity Indexed Life Insurance Market?
The equity indexed life insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of equity indexed life insurance is predicted to experience a swift expansion in the coming few years. The projection indicates a growth to $7.37 billion by 2029, at a compound annual growth rate of 12.8%.
Several factors contributing to this growth during the forecasted period include strategies for mitigating market volatility, a rising demand for retirement planning, inventive product propositions, increased consumer awareness, and transitions in the regulatory landscape. Key trends within this forecasted period are anticipated to include innovations in product offerings and hybrid solutions, the incorporation of ESG (environmental, social, and governance) factors into strategies, heightened emphasis on education and transparency, focus on accumulation and the growth of cash value, and risk mitigation strategies.
What Key Factors and Trends Are Driving The Growth Equity Indexed Life Insurance Market?
The expansion of the equity indexed life insurance market is anticipated due to increased access to insurance services and products. These services and products, provided by authorised license holders under state or federal insurance laws, have become more readily available in recent times through the rise of online sales for health and life insurance. Additionally, equity-indexed life insurance has seen a surge in popularity due to its relatively lower premiums compared to similar whole life insurance policies. For example, the Insurance Information Institute, a US organisation focused on insurance industry data, predicted in January 2022 that the replacement costs for property or casualty (P or C) insurers are likely to inflate by 4.5% to 6.5% year on year in 2023. As such, the widening availability of insurance services and products is fuelling the progress of the equity indexed life insurance market.
What Are The Market Segments In The Equity Indexed Life Insurance Market?
The equity indexed life insurance market covered in this report is segmented –
1) By Type: Whole life insurance, Universal life insurance, Variable universal life insurance, Indexed universal life insurance, Other Types
2) By Mode: Online, Offline
3) By Distribution Channel: Agency, Brokers, Bancassurance, Digital And Indirect Channels
Subsegments:
1) By Whole Life Insurance: Participating Whole Life Insurance, Non-Participating Whole Life Insurance
2) By Universal Life Insurance: Guaranteed Universal Life Insurance, Flexible Premium Universal Life Insurance, Indexed Universal Life Insurance
3) By Variable Universal Life Insurance: Variable Universal Life With Guaranteed Minimum Death Benefit, Variable Universal Life Without Guaranteed Minimum Death Benefit
4) By Indexed Universal Life Insurance: Fixed Indexed Universal Life Insurance, Equity Indexed Universal Life Insurance
5) By Other Types: Survivorship Life Insurance, Group Life Insurance, Final Expense Insurance
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What Emerging Trends Are Influencing The Growth Of The Equity Indexed Life Insurance Market?
Prominent companies in the equity-indexed life insurance market are channeling their resources into creating sophisticated technological elements like the index lock. This feature gives policyholders the option to fix an index's value at a particular moment. This means they can capture the current index value for a certain period, which can aid in safeguarding profits or curtailing losses in volatile markets. For example, the American life insurance company, Allianz Life, unveiled the Allianz Life Accumulator Indexed Universal Life (IUL) Insurance Policy in July 2024. The new policy touts enhanced growth potential, adaptable loan conditions, and the progressive index lock features for superior risk management. It also introduces three new index choices, the S&P 500 Futures Index ER, Blended Futures Index, and Bloomberg US Dynamic Balance III ER Index. Moreover, the policy offers tailored options like tax-deferred growth, death benefits, and fast-tracked death benefit provisions for serious or terminal diseases.
Who Are the Key Players In The Equity Indexed Life Insurance Market?
Major companies operating in the equity indexed life insurance market include:
• AXA Equitable Life Insurance Company
• Ping An Insurance Group Company of China Limited
• Swiss Reinsurance Company Ltd.
• Prudential Financial Inc.
• American International Group Inc. (AIG)
• AIA Group Limited
• Berkshire Hathaway Inc.
• MetLife Inc.
• Assicurazioni Generali S.p.A.
• Zurich Insurance Group AG
• Munich Reinsurance America Inc.
• Chubb Limited
• The Allstate Insurance Company
• Aviva plc
• Manulife Financial Corporation
• China Pacific Insurance (Group) Co. Ltd.
• Aflac Incorporated
• John Hancock Financial
• Mutual of Omaha Insurance Company
• The Penn Mutual Life Insurance Company
• Progressive Casualty Insurance Company
• Protective Life Corporation
• Symetra Life Insurance Company
• Minnesota Life Insurance Company
• National Life Group
• Pacific Life Insurance Company
• Tata AIG General Insurance Company Limited
• Bajaj Allianz Life Insurance Company Limited
• The Guardian Life Insurance Company of America
• Massachusetts Mutual Life Insurance Company
• New York Life Insurance Company
What Are The Regional Insights Into The Equity Indexed Life Insurance Market?
North America was the largest region in the equity-indexed life insurance market in 2024. The regions covered in the equity-indexed life insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
