GVR Report cover Term Insurance Market Size, Share & Trend Report

Term Insurance Market Size, Share & Trend Analysis Report By Type (Individual Level Term Life Insurance, Group Level Term Life Insurance, Decreasing Term Life Insurance), By Distribution Channel, By Region, And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-935-9
  • Number of Pages: 80
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global term insurance market size was valued at USD 850.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.9% from 2022 to 2028. The market growth is mainly driven by the increasing middle-class population, the advent of new digital sales channels, and the availability of a range of bespoke term insurance covers. Term life insurance is an insurance plan that offers insurance for a specific period of time. The increasing prevalence of various chronic diseases and viral infections is boosting the market growth.

U.S. term insurance market size, by type, 2019 - 2028 (USD Billion)

Changing lifestyle choices and evolving demographics globally are the other major factors that have a strong impact on the market. Various insurance companies are expected to maintain strong customer relationships by finding important propositions. At present, the players in the market are focusing on creating strategic plans to attract a large customer base. Hence, the market is estimated to show growth during the assessment period. 

Growing investments by prominent players in the market are estimated to drive the term insurance market. Technological advancement in financial sectors is also driving industry growth. Owing to this reason, various players in the market are focusing on improving the efficacy of their digital channels. While rising aging population with low birth rates in various regions could hinder the market growth.

Due to the COVID-19 pandemic, the market demand increased. With the ongoing lockdown and media reports filled with tragic stories of loss of life, the people are becoming aware that long life cannot be taken for granted. The pandemic also has led to a shift in distribution channels by increasing the integration of digital tools in the global market.

The market growth is also driven by the developments in the distribution capabilities of the various insurance schemes. The insurance companies are developing channels that enable the distribution of products and services to the target consumer by the insurer in the most cost-efficient, secure, and linear format. The e-commerce boom has made it easy for consumers and insurers to buy and sell insurance plans and reach wider consumers. Over the forecast period, the online channel is expected to serve better opportunities.

Market growth is also expected to accelerate with the private sector participation in the insurance industry. The increasing participation of private firms will lead to a competitive market and the introduction of innovative products with better pricing of insurance products. Moreover, increasing substantial improvements in the operational efficiencies and optimization of the services are likely to propel market growth. This is likely to increase consumer interest and insurance plan purchasing rate, driving the global market growth over the forecast period.

Market growth is also expected to be driven by the expansion of key players in the emerging market. Developing economies are expected to exhibit promising growth potential over the forecast period. For instance, in 2020, PNB Metlife announced the broadening of its product portfolio with three new insurance products.

Type Insights

The individual-level segment contributed to the highest share of over 75% of the global market revenue in 2021. Rising investment in the insurance sector by various companies is propelling the growth of individual-level term life insurance. Moreover, the sum assured and premiums that are payable remained constant throughout the policy, this may attract the individuals to purchase the plan and thus projected to continue to grow in the market in the upcoming years.

The group level segment is projected to register the highest CAGR of 7.9% over the forecast period due to its increasing demand. It refers to a policy that provides insurance to a group of people. It offers financials independent to an employee’s family in the event of death. Group-level term life insurance is relatively economical as compared to individual-level term life insurance. Owing to this reason, the segment is estimated to show growth during the forecast period.

Distribution Channel Insights

The tied agents and branches contributed a share of around 55% of the global market revenue in 2021 due to its increasing demand. The tied agents and branches segment represents only one insurer. Mostly corporate agents follow the tied agents and branches model for their insurance. It allows them to sell insurance policies of one insurer from the same line of business. Due to these reasons, the segment is estimated to show growth during the assessment period.

Term insurance market share, by distribution channel, 2021 (%)

The brokers segment is estimated to register the fastest growth with a CAGR of 7.3% from 2022 to 2028. It plays important role in economic growth development. It acts as an intermediate between insurers and policyholders. Brokers offer professional and technical advice about insurance products. Insurance brokers work closely with their clients in order to fulfill their needs regarding term life insurance which in turn will augment the segment growth. 

Regional Insights

North America made the largest contribution to the global market of around 40% share in 2021 due to increasing demand in the U.S. and Canada. Term insurance providing companies offers tailored insurance for their healthier customers. The insurance companies are providing lower premium rates that reward the client’s healthy lifestyle.

Asia Pacific is expected to witness a CAGR of 7.5% from 2022 to 2028. This can be attributed to increasing trend of term insurance demand across the region. An increase in disposable income in countries like China, India, and others is also driving the market growth. Hence this region is estimated to show the fastest growth rate over the forecast period.

Key Companies & Market Share Insights

The companies main focus is on innovating new types to meet the increasing demand for term insurance. However, implementing sustainability has its unique challenges and limitations. Multiple companies are targeting on the expansion and launches of recent developments in the market. Some of the key companies operating in the global term insurance market are as follows:

  • MetLife

  • Aegon Life Insurance Company

  • Prudential Financial

  • Northwestern Mutual

  • State Farm

  • MassMutual Life Insurance Company

  • AIG

  • Lincoln National

  • John Hancock USA

  • China Life Insurance Company Limited

  • Bajaj Allianz Life Insurance  

Term Insurance Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 901.6 billion

Revenue forecast in 2028

USD 1,353.1 billion

Growth Rate

CAGR of 6.9% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD Million/Billion and CAGR from 2022 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Brazil; Germany; U.K.; France; China; Japan; South Africa

Key companies profiled

MetLife; Aegon Life Insurance Company; Prudential Financial; Northwestern Mutual; State Farm; MassMutual Life Insurance Company; AIG; Lincoln National; John Hancock USA; China Life Insurance Company Limited; and Bajaj Allianz Life Insurance

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segment from 2017 to 2028. For this study, Grand View Research has segmented the global term insurance market based on type, distribution channel, and region.

  • Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Individual Level Term Life Insurance

    • Group Level Term Life Insurance

    • Decreasing Term Life Insurance

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

    • Tied Agents and Branches

    • Brokers

    • Others 

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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