The global equity indexed life insurance market revenue was around US$ 4.4 billion in 2023 and is estimated to reach US$ 14.9 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.6% during the forecast period from 2024 to 2032.
Equity indexed life insurance (EILI) is a sort of life insurance plan that incorporates components of standard life insurance with features generally related to savings or investment accounts. This insurance product is planned to pay a death advantage to beneficiaries upon the death of the policyholder while simultaneously delivering the possibility of cash value accumulation relying on the implementation of a certain stock index.
Factors Influencing Market Growth
- The insurance industry innovation and the desire for market participation of investor appeal and market performance are propelling the growth of the equity indexed life insurance market.
- The hidden costs and fees, problems in understanding, and misaligned expectations are hindering the growth of the equity indexed life insurance market
- The long-term investment outlook offers the lucrative growth of equity indexed life insurance market.
Impact of COVID-19
The impact of COVID-19 had a moderate influence on the growth of the equity indexed life insurance market, initially, there was a negative influence since market volatility elevated fears about the chances of lower equity returns.
However, as the COVID-19 pandemic stormed on and interest rates stayed low, many people changed to equity-indexed insurance in the expectancy of earning larger returns than standard savings vehicles. Also, the augmented focus on financial insurance and security during COVID-19 resulted in greater interest in life insurance products in all-around, which helped the equity indexed life insurance market in the long run.
Regional Analysis
In 2023, North America dominated the global equity indexed life insurance market in terms of revenue. This is attributed to the insurance market in this region being highly competitive and developed. The North American region's insurance businesses have a long record of creation, which has resulted in the innovation and effective marketing of EILI products. These businesses have successfully capitalized on the need for financial products that offer both security and the potential for wealth building.
Also, the Asia-Pacific region is anticipated to be the fastest-growing region for the equity-indexed life insurance market during the forecast period. This growth is attributed to the fact that the economies of this region have a custom of powerful economic growth, promoting consumer trust in insurance policies that combine their returns with the performance of financial markets. This association with equity indexed life insurance market performance lets policyholders possibly profit from the region's powerful stock markets while keeping the security of life insurance coverage.
Leading Companies
The leading prominent companies profiled in the global equity indexed life insurance market are: -
- American International Group, Inc.
- AXA
- John Hancock
- MetLife Services and Solutions, LLC.
- Mutual of Omaha Insurance Company
- Penn Mutual
- Progressive Casualty Insurance Company
- Protective Life Corporation
- Prudential Financial, Inc.
- Symetra Life Insurance Company
- Other prominent key players
Segmentation Outline
The global equity indexed life insurance market segmentation focuses on Type, Mode, Distribution Channel, and Region.
Segmentation based on Type
- Whole Life Insurance
- Universal Life Insurance
- Variable Universal Life Insurance
- Indexed Universal Life Insurance
- Others
Segmentation based on Mode
- Online
- Offline
Segmentation based on Distribution Channel
- Insurance Companies
- Agency and Brokers
- Banks
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
