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

Improvements in underlying macroeconomic and demographic variables have outweighed subdued premium price growth for the AD&D Insurance industry over the five years to 2017. Despite the Federal Reserve raising the Federal Funds Rate four times during the period, returns on debt investments have remained subdued, which has resulted in lower investment income for the industry. However, increases in per capita disposable income and the number of employees, respectively, have boosted both voluntary and group AD&D policy volumes over the five years to 2017. Similarly, the continued aging of the domestic population has benefited AD&D policy growth...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Industry 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 is on the rise
  • Industry Report - Industry Key Buyers Chapter

    The AD&D Insurance industry operates with a low level of market share concentration. The top three companies are estimated to account for 28.1% of total industry revenue in 2017. The level of concentration within the industry has decreased slightly in recent years, due to sector wide consolidation through merger and acquisition activity. While MetLife's share of the AD&D insurance market has increased during the five-year period, stagnation in Prudential Financial's group insurance segment and AIG's declining group benefit premiums have combined to decrease the industry's aggregate concentration.Concentration in the insurance sector is also dependent on the operator's structure. According to the latest available data from the American Council of Life Insurers, 76.0% o...purchase to read more.

    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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    What's in this report

    What is the AD&D Insurance Industry?

    This industry underwrites (i.e. assumes the risk and assigns premiums for) accidental death and dismemberment (AD&D) 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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 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 AD&D Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitBenefit payments and additions to policy reservesWages and commissionsOther
  • 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
    MetLife Inc., Northwestern Mutual,
  • Table: MetLife Inc. - financial performance
  • Table: Northwestern Mutual - financial performance

  • 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
    Table: Industry Data for the AD&D Insurance Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s AD&D Insurance Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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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