Equity Indexed Life Insurance Global Market Report 2024

The equity indexed life insurance market size has grown rapidly in recent years. It will grow from $3.79 billion in 2023 to $4.27 billion in 2024 at a compound annual growth rate (CAGR) of 12.7%. The expansion observed in the historical period can be credited to several factors including product diversification and customization, a heightened demand for cash value growth within insurance offerings, market expansion driven by competitiveness, responses to low-interest rates, and the evolution of indexed products within the insurance landscape.

The equity indexed life insurance market size is expected to see rapidly grown in the next few years. It will grow to $7 billion in 2028 at a compound annual growth rate (CAGR) of 13.2%.Anticipated growth in the forecast period is expected to be driven by efforts to mitigate market volatility, a rising demand for retirement planning solutions, the introduction of innovative insurance products, an increasing awareness among consumers, and changes in regulatory landscapes. Key trends projected for this period encompass product innovation and hybrid solutions, the integration of ESG (Environmental, Social, and Governance) factors, a focus on education and transparency, an emphasis on accumulation and cash value growth, as well as the implementation of risk mitigation strategies within the insurance sector.

The growth trajectory of the equity indexed life insurance market is anticipated to be propelled by an increased accessibility to insurance products and services. The ease of access to insurance has seen a notable surge, particularly through amplified online sales of life and health insurance. This trend aligns with the rising popularity of equity indexed life insurance due to its comparatively lower premiums compared to whole life insurance. Notably, recent data from the Insurance Information Institute in January 2022 indicated an expected year-on-year rise in property or casualty insurer replacement costs between 4.5% and 6.5% in 2023. Furthermore, the National Association of Insurance Commissioners reported a substantial 2.7% climb in the insurance market for 2021, amounting to $29.8 billion, with a remarkable 8.2% growth in total premium collection nationwide across all business lines from 2020. This increased access to insurance offerings drives the expansion of the equity indexed life insurance market.

Economic expansion stands poised to play a pivotal role in propelling the growth of the equity-indexed life insurance market. The sustained growth of a country's GDP signifies economic advancement, fostering consumer confidence and incentivizing investment. This economic upswing often prompts individuals to seek financial products that provide both protection and growth potential, making equity-indexed life insurance an attractive option with its guaranteed minimum interest rates and market participation. Forecasts from the Organization for Economic Co-operation and Development in June 2023 projected modest GDP growth of 0.3% in 2023 and a moderate improvement to 1.0% in 2024 for the UK. This burgeoning economic growth acts as a driving force behind the expansion of the equity indexed life insurance market. Innovative product developments emerge as a dominant trend shaping the landscape of the equity-indexed life insurance market. Key players within this market segment are strategically focused on introducing inventive solutions to fortify their market positions. A noteworthy instance includes Sun Life International's launch in December 2021 of Sun Global Solis, an index universal life insurance product tailored for ultra-high net worth and high net worth clients worldwide. This novel product offers a blend of long-term protection and potential growth, featuring competitive indexed account cap rate selections, a 2% cumulative guarantee enhancing cash surrender value, liquidity access through loans and partial surrenders post-first contract anniversary, alongside no-cost extended issue age and dollar cost averaging.

Major companies are channeling efforts into introducing innovative features within insurance products, notably emphasizing death benefit protection, to expand their customer base and secure a competitive edge. For instance, Midland National Life Insurance Company's launch of Strategic Accumulator 2 in May 2021 stands as a prime example. This indexed universal life insurance product caters to diverse financial needs by combining essential death benefit protection with the potential for long-term cash value accumulation, addressing the concerns of individuals seeking financial security for their families in the event of death during their working years. Strategic Accumulator 2 offers exclusive features such as the Fidelity Multifactor Yield IndexSM 5% ER option, designed to mitigate volatility, boasting a 125% participation rate, no cap, and non-guaranteed bonuses of 1.65% in the initial year and 2.65% from year 11 onward, tailored for clients seeking death benefit protection, those with substantial assets to safeguard, or both.

In July 2022, Chubb Limited, a Switzerland-based company offering insurance products and services, completed the acquisition of Cigna Corporation's health and life insurance business for $5.36 billion. This strategic move enables Chubb to expand its presence significantly within the Asia-Pacific region. Cigna Corporation, a US-based healthcare and insurance company, operates within the domain of equity-indexed life insurance, making this acquisition a valuable addition to Chubb's portfolio and regional growth strategy.

Major companies operating in the equity indexed life insurance market report are AXA Equitable Life Insurance Company, Ping An Insurance Group Company of China Limited, Swiss Reinsurance Company Ltd., Prudential Financial Inc., American International Group Inc. (AIG), AIA Group Limited, Berkshire Hathaway Inc., MetLife Inc., Assicurazioni Generali S.p.A., Zurich Insurance Group AG, Munich Reinsurance America Inc., Chubb Limited, the Allstate Insurance Company, Aviva PLC, Manulife Financial Corporation, China Pacific Insurance (Group) Co. Ltd., Aflac Incorporated, John Hancock Financial, Mutual of Omaha Insurance Company, the Penn Mutual Life Insurance Company, Progressive Casualty Insurance Company, Protective Life Corporation, Symetra Life Insurance Company, Minnesota Life Insurance Company, National Life Group, Pacific Life Insurance Company, Tata AIG General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, the Guardian Life Insurance Company of America, Massachusetts Mutual Life Insurance Company, New York Life Insurance Company .

North America was the largest region in the equity indexed life insurance market in 2023. The regions covered in the equity indexed life insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the equity indexed life insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of equity-indexed life insurance include whole life insurance, universal life insurance, variable universal life insurance, indexed universal life insurance, among others. Whole life insurance is a form of permanent coverage with a savings component that accrues cash value. Distribution channels for these insurance types encompass agencies, brokers, bancassurance, as well as digital and indirect channels, available both online and offline.

The equity indexed life insurance market research report is one of a series of new reports provides equity indexed life insurance market statistics, including equity indexed life insurance industry global market size, regional shares, competitors with an equity indexed life insurance market share, detailed equity indexed life insurance market segments, market trends and opportunities, and any further data you may need to thrive in the equity indexed life insurance industry. This equity indexed 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 equity-indexed life insurance market includes revenues earned by entities by providing equity-indexed life insurance policies with coverage for death benefits, debts, lost income, educational finance, and medical expenses. 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.


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