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The global term insurance market size is anticipated to reach USD 1,897.40 billion by 2030 and is anticipated to expand at a CAGR of 8.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growing digital transformation in the insurance sector is expected to create growth opportunities for the market. Various factors, such as the growing disposable income of the population, the emergence of InsurTech, and the growing middle-class population in developing economies such as China, India, and Brazil, are propelling the demand for the term insurance.
The growing digitization of the insurance industry is driving prominent term insurance providers to launch digital solutions. For instance, in November 2023, Life Insurance Corporation of India launched a new Tech-Term Insurance Plan. The new Tech-Term insurance plan is a non-linked, pure protection, online, and without-profit term insurance plan. The plan is available through online processes only, and no intermediaries are involved. Such plans are driving the adoption of term insurance among consumers due to its easy access and hassle-free process, thus benefiting the market’s growth.
Term Insurance providers are adopting cutting-edge advanced technology to automate the insurance process, reduce operating costs, and improve efficiency. This technology includes machine learning for the automation of risky and complex processes and artificial intelligence such as blockchain, robotic process automation, and robot advisors for the automation of insurance. Such technologies are expected to improve the risk-return trade-off for both insurers and policyholders, thus harnessing the market’s growth over the forecast period.
However, the term insurance sector encounters notable challenges, such as low public awareness about the benefits, evolving regulatory requirements, complex underwriting processes, and the need for affordable yet comprehensive coverage. Market leaders are actively working to address these challenges, simplifying policies, improving customer education, and adapting to changing regulations to stimulate market growth.
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Term Insurance Market Report Highlights
• The individual-level term life insurance segment is expected to grow significantly over the forecast period. The increasing awareness of the importance of financial protection and the need for affordable coverage among individuals and families are driving the segment’s growth.
• The broker segment is expected to grow significantly over the forecast period. The ability of brokers to provide personalized, expert guidance to customers, helping them navigate the complex insurance landscape and select policies that best suit their needs, is driving the segment’s growth.
• North America is anticipated to register significant growth over the forecast period. The regional growth can be attributed to the rising adoption of cutting-edge advanced technology to automate the insurance process, reduce operating costs, and improve efficiency.
• In August 2023, The Savings Bank Mutual Life Insurance Company of Massachusetts announced the launch of its new solution, AcceleRate. This innovative offering assures distribution partners and customers of rapid processing, dependability, and convenience, coupled with competitive rates on a range of term and whole life insurance products. The launch marks a significant advancement in the company's commitment to providing efficient and value-driven solutions in the insurance market.
Term Insurance Market Segmentation
Grand View Research has segmented the global term insurance market based on type, distribution channel, and region.
Term Insurance Type Outlook (Revenue, USD Billion, 2017 - 2030)
• Individual Level Term Life Insurance
• Group Level Term Life Insurance
• Decreasing Term Life Insurance
Term Insurance Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)
• Tied Agents & Branches
• Brokers
• Others
Term Insurance Regional Outlook (Revenue, USD Billion, 2017 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o Germany
o UK
o France
• Asia Pacific
o China
o India
o Japan
o South Korea
o Australia
• Latin America
o Brazil
• Middle East & Africa
o Kingdom of Saudi Arabia (KSA)
o UAE
o South Africa
List of Key Players in the Term Insurance Market
• MetLife Services and Solutions, LLC.
• Aegon Life Insurance Company Limited
• Prudential Financial, Inc.
• The Northwestern Mutual Life Insurance Company
• State Farm Mutual Automobile Insurance Company
• Massachusetts Mutual Life Insurance Company
• American International Group, Inc.
• Lincoln National Corporation
• John Hancock
• China Life Insurance (Overseas) Company Limited
• Bajaj Allianz Life Insurance Co. Ltd.
Order a free sample PDF of the Term Insurance Market Intelligence Study, published by Grand View Research.
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