Variable Life Insurance Global Market Report 2024

The variable life insurance market size has grown strongly in recent years. It will grow from $123.41 billion in 2023 to $130.97 billion in 2024 at a compound annual growth rate (CAGR) of 6.1%.The growth observed in the historic period can be attributed to several factors, including the attraction of investment components, estate planning and wealth transfer considerations, market participation leading to investment growth, flexibility in premium payments, and the tax advantages associated with such investment vehicles.

The variable life insurance market size is expected to see strong growth in the next few years. It will grow to $170.38 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. The anticipated growth in the forecast period is expected to result from heightened awareness regarding financial planning, demographic changes influencing inheritance planning, emphasis on risk management and diversified investments, demand for customized and tailored insurance policies, and the need for retirement planning solutions. Major trends expected during this period include the adoption of predictive analytics for better risk assessment, expansion of online sales and distribution channels, collaborations with insurtech startups, the introduction of wellness and health incentives within insurance policies, and efforts to enhance customer education and financial literacy.

The rapid expansion of the insurance industry is poised to propel the variable life insurance market. Factors such as heightened awareness, a burgeoning middle class, and economic development contribute to the insurance industry's growth. OECD reported a rise in total gross premiums in 2020 to $5225 billion from $5031 billion in 2019 across member countries. Major players such as the US and the UK contributed significantly, reporting premiums of $2934 billion and $380.90 billion, respectively. This rapid industry growth significantly impacts the variable life insurance sector.

Favorable government regulations and policies are anticipated to drive the variable life insurance market's growth. These supportive frameworks, ensuring consumer protection, fee transparency, and product suitability, foster trust and compliance within the variable life insurance sector. The US Department of Treasury reported a historic $819 billion in direct premiums written for the life and health sector in 2021, marking nearly 7% growth from 2020. The resurgence of interest in life insurance due to pandemic-related mortality and morbidity increases contributed to this substantial growth. Favorable government regulations play a pivotal role in bolstering the variable life insurance market.

Companies are actively introducing innovative life insurance products to fortify their market positions. Prudential Financial, Inc., a leading US-based insurance company, unveiled Prudential FlexGuard Life in November 2022. This innovative index-variable universal life insurance policy is tailored to meet evolving customer life insurance needs. Offering death benefit protection with flexible duration options and multiple avenues to enhance cash values, the policy includes the flexibility to access death benefits in case of chronic or terminal illness with the addition of a necessary rider. The adaptable nature of Prudential FlexGuard Life empowers customers to tailor their coverage according to their evolving needs and provides access to cash values when required, offering a unique opportunity to secure a legacy and avail living benefits.

Innovative developments in the variable life insurance market revolve around leveraging advanced technologies, notably digital platforms, to enhance customer accessibility and policy management. OneAmerica, a reputable US-based financial services mutual holding organization, launched a Variable Universal Life (VUL) insurance product in September 2022. This product amalgamates protective strategies with investment opportunities, empowering individuals to secure protection while accruing cash value through investments. The incorporation of digital platforms enables policyholders to seamlessly track investments, manage premiums, and make policy adjustments, reflecting OneAmerica's commitment to offering diverse options and a customer-centric approach.

In February 2021, KKR & Co. Inc., a prominent US-based investment management company, completed the acquisition of Global Atlantic Financial Group Limited for $90 billion. This substantial acquisition positions KKR & Co. Inc. as a leading provider of annuity and life insurance services in the United States. The strategic move aims to broaden the company's offerings, enabling the provision of appealing options for clients and securing increased long-term funding. Global Atlantic Financial Group Limited, a US-based insurance company, boasts a diverse range of life insurance products.

Major companies operating in the variable life insurance market report are Berkshire Hathaway Inc., Ping An Insurance (Group) Company of China Ltd., Allianz SE, AXA SA, Japan Post Holdings Co. Ltd., MetLife Inc., Munich Reinsurance Group, Prudential PLC, New York Life Insurance Company, American International Group Inc., Allstate Corporation, Nationwide Mutual Insurance Company, Swiss Reinsurance Company Ltd., Chubb Limited, Nippon Life Insurance Company, Zurich Insurance Group AG, Massachusetts Mutual Life Insurance Company, Northwestern Mutual Life Insurance Company, Aflac Incorporated, Lincoln National Corporation, Principal Financial Group Inc., Aviva PLC, Manulife Financial Corporation, Protective Life Corporation, The Penn Mutual Life Insurance Company, AIA Group Limited, Ohio National Financial Services Inc., John Hancock Life Insurance Company (USA), Generali Assicurazioni SPA, Metropolitan Life Insurance Company.

North America was the largest region in the variable life insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global variable life insurance market report during the forecast period. The regions covered in the variable life insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the variable life insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Variable life insurance primarily consists of fixed premium and variable universal life insurance. Fixed premiums entail regular payments to an insurance company for coverage within a specific policy. Key components include death benefits and additional add-on benefits. These insurance products serve various end-users, including agencies, brokers, bancassurance, and digital and direct channels.

The variable life insurance market research report is one of a series of new reports that provides variable life insurance market statistics, including variable life insurance industry global market size, regional shares, competitors with a variable life insurance market share, detailed variable life insurance market segments, market trends and opportunities, and any further data you may need to thrive in the variable life insurance industry. This variable life insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The variable life insurance market includes revenues earned by entities by providing cash value, investment variety, and flexible premiums. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.