Overview

Way of life: Increasing household affluence and an aging population will boost revenue

IBISWorld’s Life Insurance & Annuities market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$977bn
Annual Growth
12-17
3.0%
Annual Growth
17-22
Profit
Employment
362,221
Business
9,378

Industry Threats & Opportunities

  • Stronger financial markets and expected interest rate hikes are projected to boost investment income
  • Fluctuations in investment returns can have a material impact on revenue
  • An aging population will increase demand for savings-type products

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    Industry Analysis & Industry Trends

    After recovering in 2014 from losses due to declining group annuity sales, the Life Insurance and Annuities industry is expected to benefit as financial markets continue to steadily improve. Over the five years to 2017, macroeconomic conditions, such as consumer confidence, employment and corporate profit, have lifted the value of assets and boosted investment income for industry operators. Increasing household affluence, an aging population and households taking on a greater role in retirement planning will support premium growth over the five years to 2022...

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    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..

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    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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    Industry Products

    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
    Individual whole life premiums
    Group life premiums
    Individual universal life premiums
    Immediate annuities
    Individual term life premiums
    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Median age of population
  • Per capita disposable income
  • Number of employees
  • Yield on 10-year Treasury note
  • S&P 500

  • 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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Consumers

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

  • Products & Services
  • Variable deferred annuities
  • Other
  • Fixed rate deferred annuities
  • Individual whole life premiums
  • Group life premiums
  • Individual term life premiums
  • Individual universal life premiums
  • Immediate annuities
  • Chart: Life Insurance & Annuities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 35 to 44
  • Individuals aged 45 to 54
  • Individuals aged 34 and younger
  • Individuals aged 55 to 64
  • Individuals aged 65 and older
  • Chart: Major Market Segmentation for the Life Insurance & Annuities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Life Insurance & Annuities Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Median age of population (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • Why buy this report?

    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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