U.S. Life Insurance Premium and Annuity Sales Growth Trends in 2024-2025
U.S. individual life insurance premium is on track to reach a record $16 bn in 2024 and continue growing in the current year, as the market continues riding a bounce
Life insurance coverage is a type of financial protection that provides monetary support to beneficiaries upon the insured individual’s death. This coverage is designed to offer financial security to the policyholder’s family or dependents. It typically involves regular premium payments in exchange for a lump sum payout, known as the death benefit, which helps cover expenses such as funeral costs, outstanding debts, or daily living expenses.
Various types of life insurance policies exist, including term life insurance, which provides coverage for a specified period, and whole life insurance, which offers lifelong coverage with an added savings component. Policies may differ in terms of benefits, coverage limits, and conditions.
Life insurance can be tailored to individual needs and financial goals, making it a versatile option for financial planning. It is essential for individuals to assess their coverage needs based on their financial obligations and family circumstances to ensure they select the appropriate policy.
U.S. individual life insurance premium is on track to reach a record $16 bn in 2024 and continue growing in the current year, as the market continues riding a bounce
North American life insurer credit losses will remain benign in 2025, despite modest increases due to ongoing pressure on commercial real estate (CRE) assets
Total new annualized premium for Canadian life insurance increased 4% to $478 mn in Q3 2024. Despite the rise in premium, the policy count dropped 17%
Global life insurance premiums are projected to grow at an annual rate of 3% in 2025 and 2026, more than double the average growth of the past decade
U.S. life insurers are prepared for lower interest rates, with stable earnings and capital that will remain within rating thresholds
German life insurer ratings remain unaffected by reductions in Solvency II (S2) transitional measures, despite higher bond yields, focuses on fundamental S2
Canada’s life and annuity insurance sector’s solid performance, boosted by economic growth and favorable interest rates
4 years after the pandemic began in 2020, many countries still report higher death rates. For Life and Health (L&H) insurance, this poses a challenge
The low interest rate years were challenging for people trying to save for retirement. Low rates made savings products and life insurance less appealing
While life insurers’ exposures to illiquid assets have been rising, it does not necessarily lead to unmeasured risks. Private and illiquid credit cannot be traded or sold
The surge in interest rates to 15-year highs significantly improves the outlook for life and annuity insurance. The life insurance industry today looks very different to 15 years ago
In the insurance industry, understanding of the risks related to climate change is mostly concentrated in P&C business lines as well as investments
US life insurers are expected to see a benefit to investment income amid high interest rates in 2024, but investors will likely still be watching for potential issues
Life insurance costs and concerns for millennials plus types of insurance most important to young people. 26% of millennials had trouble affording their insurance
US Life insurers’ significant capital and short-term liquidity make them unlikely to be forced sellers of real estate assets at distressed valuations
Private credit investments are increasingly important to the business models and investment strategies of US life insurers
Rising interest rates are expected to continue to reduce investment maintenance reserve (IMR) balances for U.S. life insurers
The decision to buy a life insurance policy is a 7 significant step in securing financial stability for loved ones in the event of one’s passing
High demand for global life insurance and increased worldwide risk awareness sparked by the pandemic have encouraged carriers to personalize solutions