Overview

Back-up plan: Rising disposable income and a higher median age will benefit the industry

IBISWorld’s AD&D Insurance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • A return to growth will be bolstered by rising employment levels and disposable income
  • The aggregate number of employees is also a crucial demand determinant for industry operators
  • Regulatory attention with respect to the reinsurance practices of life insurers continues to rise

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    Industry Analysis & Industry Trends

    Improvements in underlying macroeconomic and demographic variables have outweighed subdued premium price growth and low interest rates for the Accidental Death and Dismamberment (AD&D) Insurance industry over the five years to 2016. Similar to the broader Life Insurance and Annuities industry (IBISWorld report 52411a), AD&D insurers invest the majority of their assets in fixed-income products. With the sustained low interest rate environment, returns on fixed assets have remained subdued during the period, which has resulted in lower investment income for the industry. Over the five years to 2021, macroeconomic and demographic trends, such as per capita disposable income levels and the median age of the population, are anticipated to consistently boost industry policy volumes...

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    Industry Report - Industry Investment Chapter

    The AD&D Insurance industry operates with a high level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.34 to capital investment. Yet, the industry's high level of capital intensity is more reflective of its large size and substantial other costs, particularly benefit payments, as opposed to a large reliance on capital expenditure for revenue. As a result, wages account for a relatively small portion of industry revenue on an annual basis.

    Regardless, the industry relies heavily on labor for each of its product offerings. Skilled underwriters, in-house sales teams, back-office support personnel and other operational employees are each required to successfully underwrite AD&D insurance policies. Mor..

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    Additional Insights for the AD&D Insurance Industry

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

  • Financial strength
  • Must comply with government regulations
  • Effective asset management
  • IBISWorld analysts also discuss how external factors such as Number of employees and Per capita disposable income in the AD&D Insurance industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the AD&D Insurance Industry?

    This industry underwrites (i.e. assuming the risk and assigning premiums) accidental death and dismemberment insurance policies. AD&D policies pay out money to a beneficiary upon the accidental death of the policyholder. In the case of accidents that cause a loss of limb or sight, AD&D policies pay out to the policyholder directly.

    Industry Products
    Group life supplement
    Voluntary AD&D coverage
    Travel accident coverage (business travel)
    Dependent AD&D coverage
    Industry Activities
    Underwriting voluntary AD&D policies
    Underwriting group life supplement AD&D policies
    Underwriting dependent AD&D policies
    Underwriting travel accident AD&D policies

    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
  • Number of employees
  • Per capita disposable income
  • Median age of population
  • Yield on 10-year Treasury note
  • S&P 500

  • Current Performance
  • Industry volatility
  • Macroeconomic and demographic trends
  • Relationship with life insurance
  • Chart: Revenue Growth

  • Industry Outlook
  • State-based regulation and reinsurance
  • Industry structure
  • Table: AD&D Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - AD&D Insurance 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
  • Voluntary AD&D coverage
  • Group life supplement
  • Dependent AD&D coverage
  • Travel accident coverage (business travel)
  • Chart: AD&D Insurance Industry Products and Services Segmentation

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

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

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

  • Industry Globalization
    Major Companies
    MetLife Inc.Northwestern Mutual
  • Table: MetLife Inc. - financial performance
  • Table: Northwestern Mutual - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the AD&D Insurance 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 AD&D Insurance Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Per capita disposable income (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Accidental Death
  • Accidental death under AD&D policies means a death caused by an unforeseen circumstance unrelated to the body. This does not include deaths related to illness or the insured's physical condition.
  • Additions To Policy Reserves
  • Increases in aggregate funds set aside to ensure the payment of future policyholder benefits.
  • Benefit Payments
  • Payments made to the beneficiary of an AD&D insurance policy in the event of accidental death or dismemberment.
  • Dismemberment
  • Industry policies typically provide a scheduled benefit, or a specific portion of the death benefit for dismemberment depending on the severity of the disability.
  • 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 AD&D Insurance:
    • 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 AD&D Insurance 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 AD&D Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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