Life lessons: Increasing household affluence and an aging population will boost industry growth

According to the Federal Reserve and the American Council of Life Insurers, the Life Insurance and Annuities industry is one of the largest sources of investment capital in the United States. Industry operators are the largest source of bond financing for domestic businesses. As a result, many companies rely on life insurers to expand operations or finance transactions over the five years to 2018. While the industry has grown during the period, it has not been without substantial revenue volatility. To that end, strong financial market performance aided industry revenue growth during the period. Over the five years to 2023, industry revenue is forecast to grow...purchase to read more.

Industry Statistics & Market Size
Revenue
$952bn
Annual Growth 13-18
3.8%
Forecast Growth 18-23
Profit
Employment
341,717
Businesses
8,884
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Large operators are expected to continue consolidating through merger and acquisition activity to operate more effectively
  • Industry demand is also affected by a variety of factors external to the economy, including marriage trends and mortality rates
  • The availability of variable annuities is expected to remain low
  • Industry Report - Starting a New Business Chapter

    The Life Insurance and Annuities industry has significant barriers to entry. Potentially the highest barrier to overcome, a prospective entrant must first raise capital to run operations. After sufficient capital is accumulated, new enterprises must build a distribution network that uses both in-house and independent agents and brokers to sell their products. The business must also hire highly-trained actuaries and underwriters who are capable of competitively pricing policies and minimizing risks.The extensive amount of regulation that the industry is subject to presents another barrier to entry for potential operators to overcome. The...purchase to read more.

    Additional Insights for the Life Insurance & Annuities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Life Insurance & Annuities Industry are

  • Financial strength
  • Must comply with government regulations
  • Effective asset management
  • IBISWorld analysts also discuss how external factors such as Median age of population and Per capita disposable income in the Life Insurance & Annuities industry impact industry performance..

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    What's in this report

    What is the Life Insurance & Annuities Industry?

    Operators within this industry are primarily engaged in accepting liability under annuities and life, disability income and accidental death and dismemberment insurance policies. Enterprises within this industry include fraternal organizations, privately held insurers, publicly traded insurers and mutual insurance companies.

    Industry Products
  • Variable deferred annuities
  • Fixed rate deferred annuities
  • Immediate annuities
  • Life insurance premiums
  • Investment income
  • Industry Activities
  • Underwriting variable deferred annuities
  • Underwriting fixed rate deferred annuities
  • Underwriting individual whole life policies
  • Underwriting group life policies
  • Underwriting individual universal life policies
  • Underwriting immediate annuities
  • Underwriting individual term life policies
  • Investing insurance premiums
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Median age of population
  • Per capita disposable income
  • Number of employees
  • Yield on 10-year Treasury note
  • Regulation for the Investment Management industries

  • Current Performance
  • Industry offerings and revenue
  • Industry transformation
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population spurs improvements
  • Investment income volatility
  • Consolidation and globalization
  • Table: Life Insurance & Annuities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Life Insurance & Annuities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Investment income
  • Variable deferred annuities
  • Life insurance premiums
  • Fixed rate deferred annuities
  • Other
  • Immediate annuities
  • Chart: Life Insurance & Annuities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 35 to 54
  • Individuals aged 55 to 64
  • Individuals aged 65 and older
  • Individuals aged 34 and younger
  • Chart: Major Market Segmentation for the Life Insurance & Annuities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Benefit payments
  • Additions to policy reserves
  • Wages and commissions
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Life Insurance & Annuities

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Life Insurance & Annuities Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Life Insurance & Annuities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Life Insurance & Annuities Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Median age of population (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Fixed Annuity
  • A type of investment vehicle that guarantees a future stream of fixed payments. Annuities transfer investment risk from the insured to the insurer.
  • Permanent Life Insurance
  • A policy that provides similar coverage as term life insurance but is meant to be held and paid for during the duration of the insured person's life.
  • Policies In Force
  • The total dollar amount of insurance that has been issued by a company, which is generally the sum of the face value or potential payouts of the policy plus dividends.
  • Term Life Insurance
  • A policy that provides life insurance coverage at a fixed rate of payments over a limited period of time, usually one year. After the period, coverage at the previous rate is not guaranteed.
  • Variable Annuity
  • A type of annuity that provides future payments to the contract holder, usually at retirement. Payments are dependent on the performance of annuity's underlying portfolio of securities.
  • Variable Life Insurance
  • A type of life insurance in which benefit payments are determined by the performance of underlying investments chosen by the policyholder.
  • Whole Life Insurance
  • A permanent life insurance policy that remains in force for the insured person's whole life as long as premium payments remain current or on time.
  • What Our Customers Say

    Why buy this report?

    The Life Insurance & Annuities Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Life Insurance & Annuities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Life Insurance & Annuities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Life Insurance & Annuities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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