What Has Been The Evolution of the Variable Life Insurance Market in Recent Years?
The variable life insurance market has seen considerable growth due to a variety of factors.
• The market size for variable life insurance has been experiencing robust growth over the past few years. It is projected to expand from $130.97 billion in 2024 to $138.44 billion in 2025, with a compound annual growth rate (CAGR) of 5.7%.
Factors such as the allure of the investment component, estate planning and wealth transfer, market participation and investment growth, premium payment flexibility, and tax benefits have contributed to the growth in the historical period.
What Is the Forecasted Market Size and Growth Rate for The Variable Life Insurance Market Size In The Coming Years?
The variable life insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for variable life insurance is predicted to experience robust growth in the forthcoming years, escalating to $185.43 billion in 2029 with a compound annual growth rate (CAGR) of 7.6%.
This anticipated growth in the forecast period is due to factors such as rising awareness about financial planning, demographic changes, inheritance planning, risk management, investment diversification, and the need for personalized policies and retirement planning solutions. Notable trends for the forecast period encompass the use of predictive analytics for evaluating risks, broadening online sales and distribution channels, partnerships with insurtech startups, the launch of health and wellness incentives, and efforts to improve customer education and financial literacy.
What Factors Are Driving Growth In The Variable Life Insurance Market?
The surge in the overall insurance sector is projected to fuel the expansion of the variable life insurance market. This industry's expansion can be linked to factors such as an increasing understanding of insurance needs, the proliferation of the middle class, and economic advancements. As the insurance sector swells, a greater number of individuals gain access to insurance products, including variable life insurance. This type of insurance allows policyholders to invest some their premiums into a range of investment tools like stocks and bonds. For example, a report released by the Office of Financial Research, a US government agency, in December 2023, showed that the average premium for a homeowners' policy in Florida is around $6,000 annually. This is substantially higher than the national yearly average of $1,700, and 6.8 million properties have already been subjected to inflated insurance rates. As a result, the swift expansion of the broader insurance industry is notably boosting the growth of the variable life insurance market.
What Are The Main Segments Of The Global Variable Life Insurance Market?
The variable life insurance market covered in this report is segmented –
1) By Type: Fixed Premium, Variable Universal Life Insurance
2) By Components: Death Benefits, Add-On Benefits
3) By End-User: Agency, Brokers, Bancassurance, Digital And Direct Channel
Subsegments:
1) By Fixed Premium: Standard Fixed Premium, Enhanced Fixed Premium
2) By Variable Universal Life Insurance: Investment-Linked Variable Universal Life, Flexible Premium Variable Universal Life
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Which Emerging Market Trends Are Altering The Variable Life Insurance Industry?
The introduction of new products is a key trend being observed in the variable life insurance market, as leading companies aim to solidify their foothold through the launch of fresh and innovative life insurance offerings. As a clear testament to this phenomenon, Prudential Financial, Inc., an insurance establishment based in the US, launched a pioneering index-variable universal life insurance product titled Prudential FlexGuard Life in November 2022. This product caters to the dynamic requirements of life insurance consumers by offering a balanced mix of coverage, growth potential, and easy access. With Prudential FlexGuard Life, customers enjoy death benefit protection that includes fixed duration options, numerous ways to enhance cash values, alongside the provision to access death benefits prematurely in instances of chronic or terminal illness provided a specific rider is appended to the policy. The product serves as a flexible solution that allows alteration as per shifting needs, empowering customers to take hold of their future. It facilitates access to cash values when needed, hereby presenting a unique chance for policyholders to leave behind a legacy, while also enhancing their prospects for availing living benefits.
Who Are the Key Players In The Variable Life Insurance Market?
Major companies operating in the variable life insurance market include:
• Berkshire Hathaway Inc.
• Ping An Insurance (Group) Company of China Ltd.
• Allianz SE
• AXA SA
• Japan Post Holdings Co Ltd.
• MetLife Inc.
• Munich Reinsurance Group
• Prudential plc
• New York Life Insurance Company
• American International Group Inc.
• Allstate Corporation
• Nationwide Mutual Insurance Company
• Swiss Reinsurance Company Ltd
• Chubb Limited
• Nippon Life Insurance Company
• Zurich Insurance Group AG
• Massachusetts Mutual Life Insurance Company
• Northwestern Mutual Life Insurance Company
• Aflac Incorporated
• Lincoln National Corporation
• Principal Financial Group Inc.
• Aviva plc
• Manulife Financial Corporation
• Protective Life Corporation
• The Penn Mutual Life Insurance Company
• AIA Group Limited
• Ohio National Financial Services Inc.
• John Hancock Life Insurance Company (USA)
• Generali Assicurazioni SPA
• Metropolitan Life Insurance Company
What Is The Most Dominant Region In The Variable Life Insurance Market?
North America was the largest region in the variable life insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global variable life insurance market report during the forecast period. The regions covered in the variable life insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
