Global Life And Health Reinsurance Market

A critical illness policy is a sort of health insurance that pays for your medical costs if severe illnesses such as cancer, organ transplant, heart attack, stroke, renal failure, and paralysis, among others listed in the policy, are discovered. It functions as an addition to the standard health insurance policy. The main types of critical illness insurance are individual insurance and family insurance. Family insurance refers to the insurance that is issued to the family members, including the holder. The various modes include monthly, quarterly, half-yearly, and yearly. These are used in cancer, heart attack, stroke, and other applications. The critical illness insurance research report is one of a series of new reports from The Business Research Company that provides critical illness insurance statistics, including critical illness insurance industry global market size, regional shares, competitors with critical illness insurance shares, detailed critical illness insurance segments, market trends and opportunities, and any further data you may need to thrive in the critical illness insurance industry. This critical illness insurance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry. The global critical illness insurance market grew from $215.49 billion in 2022 to $249.05 billion in 2023 at a compound annual growth rate (CAGR) of 15.6%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The critical illness insurance market is expected to grow from $385.95 billion in 2027 at a CAGR of 11.6%. The increased prevalence of critical diseases is driving the global critical illness insurance market. Treatment for critical illnesses such as cancer incurs a huge amount, and therefore, having critical illness insurance can be beneficial to lower the burden of the treatment cost. The insurance service providers provide a lump-sum payment to the policyholder upon diagnosis of the critical disease. Some other common types of critical illnesses include heart attack, stroke, and coronary artery bypass. According to the cancer profile 2020 report by WHO, the incidence of global cancer in 2020 was reported as 10 million deaths that occurred in the year due to cancer. Therefore, the growing prevalence of critical illness is expected to drive the global critical illness insurance market. A lack of awareness about critical illness insurance is hindering the growth of the global critical insurance market. The majority of critical illness insurance is included in term plans. The majority of people are aware of life insurance plans, but few are aware of term insurance plans. A term plan is a type of life insurance plan for a fixed tenure that includes critical illness cover as an inbuilt feature in the actual base plan. Besides being economical, benefits provided on the demise of the policyholder are greater in the case of term plans when compared to the maturity benefits offered by life insurance plans. For instance, a research study published in the Economic Times in 2020 says that only 1 out of 5 insurance holders has term insurance in urban India, which is 65% of the population of urban India. This is mostly due to the lack of awareness among people about term plans offered by insurers that also include critical illness coverage. An increase in the range of critical illnesses covered in critical illness insurance policies is a major trend shaping the critical insurance market. Major insurance companies are focusing on adding coverage for many new diseases such as Alzheimer’s disease, multiple sclerosis, Parkinson’s disease, and motor neuron diseases besides cancer, stroke, coronary artery bypass, and heart attack. For instance, according to the Parkinson's Foundation, 1 million people are suffering from the disease in the US, and it is expected to reach 1.2 million by 2030. This increase in the range of critical illnesses is responsible for the growing trend in insurance policies. In January 2020, HDFC Ergo, a Mumbai-based general insurance company acquired 50.08% stake in Apollo Munich Health Insurance for $183m (1,494 Cr Rs). The acquisition would combne expertise of both the companies to provide better value to their customers. Apollo Munich Health Insurance is a India-based insurance company. Major players in the critical illness market are China Life Insurance, Allianz, Ping An Insurance, Aviva, Legal & General, China Pacific Insurance, Prudential PLC., New China Life Insurance, Aegon, and AXA. North America was the largest region in the critical illness market in 2022. Asia-Pacific was the second largest market in global critical illness market. The regions covered in the global critical illness market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The countries covered in the critical illness market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA. The critical illness insurance market consists of sales of critical illness insurance products by entities that are engaged in directly underwriting critical illness cover or a dread disease policy, which is an additional insurance coverage to cover those overruns where traditional health insurance may fall short. The insurance industry is categorized on the basis of the business model of the firms present in the industry. Some insurance firms may offer other services financial or otherwise. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. The value of the market is based on the premiums paid by the insured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified). The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products. The global critical illness insurance market is segmented - 1) By Type: Individual Insurance, Family Insurance 2) By Application: Cancer, Heart Attack, Stroke, Other Applications 3) By Premium Mode: Monthly, Quarterly, Half Yearly, Yearly

Hospitalization insurance is a type of health insurance policy that pays for hospital stays, outpatient medical treatment, surgery, or any other hospital-related activity involving the insured's health. The main demographics of hospitalization insurance are minors, adults, and senior citizens. Senior citizen's hospitalization insurance refers to the insurance that is provided for people over 60 years. The various service providers are private, public. The different networks are preferred provider organizations (PPOs), points of service (POS), health maintenance organizations (HMOs), exclusive provider organizations (EPOs), and other networks. The hospitalization insurance research report is one of a series of new reports from The Business Research Company that provides hospitalization insurance statistics, including hospitalization insurance industry global market size, regional shares, competitors with hospitalization insurance share, detailed hospitalization insurance segments, market trends and opportunities, and any further data you may need to thrive in the hospitalization insurance industry. This hospitalization insurance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry. The global hospitalization insurance market grew from $101.91 billion in 2022 to $117.03 billion in 2023 at a compound annual growth rate (CAGR) of 14.8%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The hospitalization insurance market is expected to grow from $174.91 billion in 2027 at a CAGR of 10.6%. The growing adoption of health insurance policies by individuals during COVID-19 is expected to fuel the growth of the hospitalization insurance market over the forecast period. The demand for health insurance policies has seen a massive spike during the coronavirus pandemic. The rise in the number of COVID-19 positive cases has made individuals more conscious of the value of buying health insurance. For instance, the officials from the health insurance company, Policybazaar, stated that in March 2020 (from March 6 to March 31) they experienced a rise of 20–30% over 25 days in terms of sales of health insurance policies when compared with sales in February. More specifically, the number of health policies distributed in March was nearly 45,000, compared with roughly 36,000 in January and February 2020. Therefore, the growing adoption of health insurance policies during COVID-19 contributes to the growth of the hospitalization insurance market. The exclusion of various medical treatments from the health policy is expected to limit the growth of the hospitalization insurance market in the forecast period. The exclusion is a policy clause that excludes coverage for certain types of disorders. Insurers use exclusions to break out coverage for factors they are not willing to insure. For example, most insurance companies, such as Royal Sundaram General Insurance Co. Limited, Policy Bazaar, and a few others, do not offer compensation for the use of alternative therapies for the treatment of medical problems. Many insurance benefits do not offer compensation for expenses associated with childbirth and pregnancy. Similarly, infertility and abortion care expenses are not included under these insurance plans. Therefore, the exclusion of various medical treatments from the health policy restrains the growth of the hospitalization insurance market. The integration of blockchain in health insurance is a key trend gaining popularity in the hospitalization insurance market. The incorporation of blockchain in health insurance provides many benefits such as enhancing integrity and protection by offering better control of patient data, reducing regulatory and enforcement costs, and maximizing interactions between health practitioners, insurance providers, and insurers. In November 2020, Tata Consultancy Services joined hands with B3i to launch blackchain solutions for the insurance industry. Through this, the companies aim to apply blockchain technology to insurance and improve data accuracy. In January 2020, HDFC ERGO, a joint venture firm between HDFC and ERGO International AG, one of the insurance subsidiaries of Munich Re Group, acquired a majority stake in Apollo Munich Health Insurance Company for about $200 million (Rs. 1485.15 crores). The acquisition is expected to provide HDFC ERGO an opportunity to grow by increasing its footprint and distribution network. It's a strategic objective, and Apollo Munich is renamed as HDFC ERGO. Major players in the hospitalization insurance market are Aetna, Anthem Health Insurance, Blue Cross Blue Shield Companies, Cigna, Humana, HCSC, Highmark, Kaiser Permanente, UnitedHealth Group, and Wellcare. North America was the largest region in the hospitalization insurance market in 2022. Asia-Pacific was the second largest market in global hospitalization insurance market. The regions covered in the global hospitalization insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The countries covered in the hospitalization insurance market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA. The hospitalization insurance market consists of sales of hospitalization insurance products by entities that are engaged in directly underwriting hospitalization insurance policies providing coverage for hospital confinement due to illness, accidents, intensive care of convalescence. The insurance industry is categorized on the basis of the business model of the firms present in the industry. Some insurance firms may offer other services financial or otherwise. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. The value of the market is based on the premiums paid by the insured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified). The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products. The global hospitalization insurance market is segmented - 1) By Service Provider: Private, Public 2) By Network: Preferred Provider Organizations (PPOs), Point Of Service (POS), Health Maintenance Organizations (HMOs), Exclusive Provider Organizations (EPOs), Other Networks 3) By Demographics: Minors, Adults, Senior Citizens

Domiciliary insurance is a type of health insurance in which the policyholder is considered hospitalized even when receiving treatment at home. Home-based treatments for an injury, cure, or disease are also covered by health insurance, and policyholders are compensated for them. The main types of domiciliary insurance are diseases insurance, medical insurance, income protection insurance, and other insurance. Critical disease insurance refers to the domiciliary insurance that is issued to an individual and covers critical diseases. There are two kinds of coverage: lifetime coverage and term coverage. The demographics included are minors, adults, and senior citizens. The different networks involved are preferred provider organisations (PPOs), points of service (POS), health maintenance organisations (HMOs), and exclusive provider organisations (EPOs). The various service providers are both private and public. The domiciliary insurance research report is one of a series of new reports from The Business Research Company that provides domiciliary insurance statistics, including domiciliary insurance industry global market size, regional shares, competitors with domiciliary insurance shares, detailed domiciliary insurance segments, market trends and opportunities, and any further data you may need to thrive in the domiciliary insurance industry. This domiciliary insurance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry. The global domiciliary insurance market grew from $32.42 billion in 2022 to $38.35 billion in 2023 at a compound annual growth rate (CAGR) of 18.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The domiciliary insurance market is expected to grow from $66.69 billion in 2027 at a CAGR of 14.8%. The growing geriatric population is expected to drive the domiciliary insurance market. The population of the world is growing older, with the age group of 65 and above being the fastest growing. For instance, according to World Health Organization, there were about 1 billion people aged 60 years and above in the world. The number is expected to reach 1.4 billion by 2030 and 2.1 billion by 2045. The rise in the geriatric population means a population with more health problems that require constant care and have limited ability to move, which makes them dependent on health services in the comfort of their homes. Moreover, even healthcare providers prefer treating them at home unless there is a major emergency, as these services are expensive. People are opting for domiciliary insurance as a separate policy or along with their health insurance plan to cover these home hospitalisation treatment costs, which further contributes towards the growth of the market. Limited coverage of domiciliary insurance is expected to hamper the market's growth. Domiciliary insurance offers very limited coverage as this is not applicable for chronic ailments and treatments of less than three days. For instance, Reliance (India) domiciliary insurance covers only up to 10% of the base sum insured, subject to a maximum of INR 50,000 in aggregate during the policy period. Also, domiciliary insurance does not cover ailments such as bronchitis, epilepsy, asthma, cough, cold, influenza, diabetes mellitus and insipidus, pyrexia of unknown origin for a period of fewer than ten days, chronic nephritis, psychiatric or psychosomatic disorders, diarrhea, dysentery, gastroenteritis, arthritis, gout or rheumatism, hypertension, tonsillitis, upper respiratory tract infection, and laryngitis, or pharyngitis. The lack of insurance coverage for all the ailments and emergency care makes it less popular, which in turn hinders the growth of the market. Companies are concentrating on the release of policies specific to COVID-19. With the surge in the coronavirus pandemic cases, a large number of people getting affected has strained the hospital and healthcare services further, making bed availability a challenge. However, as all cases do not require hospitalization, hospitals are requesting the affected people to receive treatment at their homes. People are opting for home treatment to ensure safe and effective treatment due to the fear of contracting a secondary infection from other patients in public hospitals and the high price charged by private hospitals. This has allowed the companies in the domiciliary insurance market to cater to the domiciliary insurance services along with the normal health insurance policies specific to COVID. For instance, in March 2020, Edelweiss General Insurance’s health policy plans to cover treatment for COVID-19, which includes support for the patient during domiciliary hospitalization. ICICI Lombard has decided to cover the home health services for the treatment of COVD-19 with coverage for domiciliary hospitalization. In January 2020, HDFC, an Indian-based provider of housing finance with a presence in banking, life and general insurance, asset management, venture capital, real estate, education, deposits, and educational loans, acquired a majority stake in Apollo Munich health insurance for about $334 million. Through this acquisition, Apollo Munich health insurance will be renamed HDFC ERGO health insurance. Apollo Munich Health Insurance is an India-based company formed by the collaboration between Apollo Hospitals and Munich which offers services such as life, health, accident, and travel insurance. Major players in the domiciliary insurance market are Cigna Corporation, AIA Insurance Group, Allianz SE, AXA, Aviva PLC., Aetna, Inc. HDFC Ergo, and Munich Re. North America was the largest region in the domiciliary insurance market in 2022. Asia-Pacific was the second largest market in global domiciliary insurance market. The regions covered in the global domiciliary insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. The countries covered in the domiciliary insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA. The domiciliary insurance market consists of sales of domiciliary insurance products by entities that are engaged in directly underwriting insurance policies for home based treatment done for a disease, illness or injury. It could be because of lack of accommodation at the hospital or because the patient's condition doesn't permit them to get admitted in the hospital. The insurance industry is categorized on the basis of the business model of the firms present in the industry. Some insurance firms may offer other services financial or otherwise. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. The value of the market is based on the premiums paid by the insured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified). The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products. The global domiciliary insurance market is segmented - 1) By Insurance Type: Diseases Insurance, Medical Insurance, Income Protection Insurance, Other Insurance Types 2) By Coverage Type: Lifetime Coverage, Term Coverage 3) By Demographics: Minors, Adults, Senior Citizen 4) By Network: Preferred Provider Organizations (PPOs), Point Of Services (POS), Health Maintenance Organization (HMOs), Exclusive Provider Organizations (EPOs) 5) By Service Provider: Private, Public

The life insurance providers market consists of the sale of life insurance policies. Life insurance providers enter into a legal contract with the insurance policyholder, where the insurer (life insurance provider) promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. The life insurance providers are primarily engaged in the pooling of risk by underwriting insurance (that is, assuming the risk and assigning premiums) and annuities.

The global life insurance market is expected to grow from $2475.85 billion in 2020 to $2880.18 billion in 2021 at a compound annual growth rate (CAGR) of 16.3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $3519.44 billion in 2025 at a CAGR of 5.1%.

The rise in disposable income in emerging countries such as India and China is expected to drive the life insurance providers market. Economic growth in the middle-income group translates to higher disposable income which allows them to invest in life insurance products. According to a report by the Swiss Re Institute, the world’s seven largest emerging markets will contribute 42% of global growth with China contributing 27%. This rising disposable income, especially in emerging countries is expected to increase demand for life insurance plans thereby driving the life insurance providers market.

Lack of awareness about life insurance and complex insurance products are acting as a restraint on the life insurance providers market. A large number of people tend to invest in traditional investment instruments as they are unaware of the benefits of life insurance. According to a survey conducted by PHD Research Bureau, around 49% of the population in India is not familiar with insurance products and around 57% of the people find insurance products too complicated and difficult to understand. This lack of awareness and information proves to be a restraint on the life insurance providers market.

Robotic process automation and artificial intelligence have transformed the way in which business is done in the insurance industry. Robotic process automation and artificial intelligence are being used in the life insurance industry to accurately predict outcomes, improve customer service, guide the development of new products, detect risks, and cross-promote products. For example, Aditya Birla Sun Life Insurance has launched DISHA 2.0, an Upgraded AI-Enabled ChatBot to navigate personalized solutions for life insurance choices. These technological developments will enhance the customer experience and will drive the market.

Life insurance companies are monitored by regulatory bodies such as the National Association of Insurance Commissioners (NAIC) in the USA, the Prudential Regulatory Authority (PRA) in the UK, and the China Insurance Regulatory Commission in China. For instance, the China Insurance Regulatory Commission (the “CIRC”), established on November 18, 1998, is authorized by the State Council to conduct administration, supervision, and regulation of the Chinese insurance market, and to ensure that the insurance industry operates stably in compliance with the law. CIRC is responsible for licensing, developing regulations on the administration of reinsurance business, and measures on administration of life and health insurance.

In 2019, New York Life agreed to acquire Cigna’s group life and disability insurance business for $6.3 billion. This acquisition increases the value which New York Life can deliver to their policy owners, strengthens their well-defined business model. Cigna Corporation is a global health service company that services for improving health, well-being. Cigna operates in 30 countries and has 165 million customer relationships. Cigna is founded in the year 1982 by the merger of CG and INA.

Major players in the market are Munich Re, AXA, Generali, Allianz, and China Life Insurance Company Limited.

The countries covered in the global life insurance market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia.

The regions covered in the global life insurance market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global life insurance market is segmented -

1) By Type: Term Life Insurance, Whole Life Insurance, Variable Life Insurance, Equity Indexed Life Insurance, Accidental Death Insurance, Other Life Insurance

2) By Application: Agency, Brokers, Bancassurance, Digital & Direct Channels

3) By Mode: Online, Offline

Life Insurance Providers Market Definition

The life insurance providers market consists of sales of life insurance products and related services by entities (organizations, sole traders and partnerships). These entities are involved in underwriting annuities and life insurance policies, disability income insurance policies and accidental death and dismemberment insurance policies. This includes both government and private owned Insurance providers that underwrite both linked policies which act as insurance as well as investment policies and non-linked polices or annuities against events such as death, permanent disability and temporary disability. Clients of these insurance providers are the general public who buy life insurance policies, the purchase can be made either through an intermediary or by direct selling.

The whole life insurance providers market consists of sales of whole life insurance products that provide guaranteed death benefits during the entire life of the policyholder. Clients of these insurance providers are the general public who buy life insurance policies, either through an intermediary or direct selling.

The global whole life insurance market was valued at about $2600 billion in 2018 and is expected to grow to $3526.8 billion at a CAGR of 7.9% through 2022.

The rise in disposable income in emerging countries such as India and China is expected to drive the whole life insurance market. Economic growth in the middle income group translates to higher disposable income which allows them to invest in whole life insurance products. According to Swiss Re Institute’s sigma report, the seven largest emerging markets will contribute 42% of global growth with China contributing 27%. This rising disposable income, especially in emerging countries is expected to increase demand for whole life insurance plans driving market growth.

Lack of awareness about life insurance and complex insurance products are acting as a restraint on the whole life insurance market. A large number of people tend to invest in traditional investment instruments as they are unaware about the benefits of whole life insurance. According to a survey conducted by PHD Research Bureau in 2016, around 49% of the population in India is not familiar with insurance products and around 57% of the people find insurance products too complicated and difficult to understand. Thus, lack of awareness is acting as a restraint on the whole life insurance market.

Whole life insurance companies are increasingly investing in artificial intelligence and automation technologies for faster claims processing. Artificial intelligence (AI) is a simulation of human intelligence processes used by machines, commonly computer systems, to process and automate large amounts of data. Whole life insurance companies process large number of claims, customer queries and large amounts of diverse data that are being simplified using automation technologies. Artifical intelligence is being used by insurance companies to provide coverage personalization, and faster and customized claim settlement. For instance, major insurance companies such as AXA and Generali have invested in artificial intelligence and automation technologies to simplify business operations and enhance customer experience.

Life insurance companies are monitored by regulatory bodies such as the National Association of Insurance Commissioners (NAIC) in the USA and the Prudential Regulatory Authority (PRA)in the UK. For instance, insurance companies in the EU are required to follow the General Data Protection Regulation (GDPR) which creates guidelines on collecting and processing personal data of individuals within the EU. Life insurance companies can be fined upto 4% of their annual turnover for data violation. In case of a data breach, customers are required to be notified within 72 hours after the company is aware of the breach.

In 2018, Phonix Group acquired the entire life assurance buisnees of Standard Life Aberdeen for $3.2 billion. The deal is expected to strengthen long term partnership between the two companies and expand business.

The equity indexed life insurance market consists of sales of equity indexed life insurance that focuses on building a cash value which can be borrowed against or invested and used to cover increases in the cost of the insurance. This results in the elimination of premium payments. Equity-indexed life insurance offers flexibility on the amount of premiums and a cash value which can provide gains equal to that of the stock market.

The global equity indexed life insurance market was valued at about $2.1 billion in 2018 and is expected to grow to $3.33 billion at a CAGR of 12.3% through 2022.

The equity indexed life insurance market has been geographically segmented into North America, Western Europe, APAC, Eastern Europe, South America and Middle East & Africa. The North American market is the largest market for equity indexed life insurance and is expected to continue to be the largest market during the forecast period.

The economic growth in the emerging markets drives the equity indexed life insurance market with the economies being exposed to external cyclical factors. Improving global economies, and a positive scenario in interest rates will continue to impact the market positively. For instance, the report by sigma in 2019 shows that the seven largest emerging markets will contribute around 42% of global growth, with China alone contributing 27%. This growth will drive the need to cover businesses with insurances and thereby contribute to the growth of the market.

The equity indexed life insurance market is being restrained by a low awareness about life insurance, which also includes equity indexed life insurance. This results in a fewer number of people buying equity indexed life insurance. For instance, according to a report by Insurance Regulatory and Development Authority conducted in 2016, the life insurance penetration in India was just 3.69%. The complexity of equity indexed life insurance results in even lesser awareness about the product. Even though the awareness levels are increasing recently, they are still very low in some regions, thus restraining the market. Poor advice, wrong information and lack of understanding has a negative influence on the market.

Companies in the equity indexed life insurance market are undergoing transformation through automation of insurance activities. According to a report by McKinsey, about a quarter of full time positions in the insurance industry will be replaced by automation in the next 10 years, due to a higher efficiency and error free tasks possible through automation. The positions that will be replaced include those of IT, operations, administrative support and sales support. For instance, a Scandinavian insurance company has rigorously transformed the claims handling process by the use of automation. In another instance, Haven Life, a life insurance company, has used digital technology for offering life insurance quickly and at a low cost. The company has achieved this through an online application process that needs a maximum of 20 minutes to make an instant decision on term coverage up to $1 million.

Major players in the equity indexed life insurance market are Allianz, AXA Equitable, Ping An Insurance, China Life Insurance and Pacific Life.

Term Life Insurance Market Definition

The term life insurance market consists of sales of term life insurance products and related services by entities (organizations, sole traders and partnerships). These entities are engaged in initially underwriting (i.e., assuming the risk and assigning premiums) annuities and life insurance policies, disability income insurance policies, dismemberment insurance and accidental death policies Term life insurance is a type of life insurance which provides only a death benefit (through lump-sum, monthly payment or annuity) to the beneficiary if the person insured dies during a specified term period. If the person insured survives until the end of the term, the coverage ceases without any value (or payments made) and thereafter death claim cannot be made. Term life insurance providers invest premiums to build up a portfolio of financial assets to be used against future claims. Direct insurance providers are entities that are engaged in primary underwriting and assuming the risk of insurance policies.