Life Insurance Product Penetration

Goals

To find out the penetration rate of life insurance products in the United States by type and cross-sell. Typical aspects to be addressed in the research includes distribution of the market by product types (e.g. long term care, term life, fully life, death benefit annuity, etc.), size of the market in terms of revenue, growth/changes in market distribution (e.g. what percentage of policyholders convert from term to full life), etc.

Early Findings

  • The market size of the life insurance & annuities industry, measured by revenue, is US$868.5bn in 2020.
  • The market size of the industry is expected to increase by 1.6% in 2020.
  • However, driven by the negative factors affecting this industry, such as the median age of population and high competition, life Insurance & annuities market in the US has declined 2.3% per year on average between 2015 and 2020.
  • The life/annuity insurance sector consists of segments such as annuities, accident and health, and life insurance. Net premiums written for the sector totaled $600.6 billion in 2018.
  • The life insurance & annuities industry earned US$604.6 billion in the form of premiums, consideration and deposits in 2018.
  • Out of this earning of US$604.6 billion, US$145.4 billion were earned from life insurance premiums, US$269.7 billion were earned from annuity premiums and deposits, US$184.2 billion were earned from accident and health premiums and US$1.3 billion were earned from credit life and credit accident and health premiums.
  • According to the National Association of Insurance Commissioners or NAIC, Metropolitan Group had the highest market share of 6.53% in the life and fraternal insurance industry, followed by the Northwestern Mutual Group(6.33%), New York Life Group (5.63%), Prudential of America Group (5.50%) and Lincoln National Group (5.30%).
  • In 2018, LendEDU conducted a life insurance-focused survey of 1,000 adult Americans.
  • 54% of respondents were found to have a life insurance policy. 83% of these respondents thought their life insurance policy was worth the cost, but 33%indicated that they did not fully understand how their policy worked.
  • 38% of survey respondents reported having a term life policy, while 41% had a whole life insurance policy. 1% opted not to disclose their policy type, while 20% were not sure which policy they held.
  • 30% of term policyholders said they preferred the flexibility of a term life policy, while 49% pointed to the affordability and value of a term life policy and 11% said that they received a recommendation from a trusted source to go with a term life instead of a whole life insurance policy.
  • On the other hand, 32% of whole life policy holders said that they went with a whole life plan because someone they trust recommended it, 27% wanted a longer term option and 32% believed that whole life policies offered more value.
In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals


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