Corporate Owned Life Insurance Market Report 2025

The corporate owned life insurance market size has grown strongly in recent years. It will grow from $919.85 billion in 2024 to $985.45 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth during the historic period is attributed to a rise in corporate liability exposure, increased death benefit planning by companies, expansion of financial reserve strategies among large employers, growth in funding methods for executive retirement plans, and heightened efforts to retain senior executives.

The corporate owned life insurance market size is expected to see strong growth in the next few years. It will grow to $1.28 trillion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period is expected to be driven by a stronger focus on long-term executive retention strategies, growing demand for internally funding benefit obligations, increased reliance on insurance-backed financial instruments, heightened demand for post-employment benefit security, and broader use of insurance as a tax-efficient asset class. Key trends in this period include AI-powered underwriting models, blockchain-enabled policy tracking, machine learning applications for mortality risk assessment, cloud-native insurance platforms, and digital identity verification processes for onboarding policyholders.

The rising employee benefit funding is expected to drive growth in the corporate-owned life insurance market moving forward. Employee benefit funding involves the financial mechanisms employers use to cover benefits such as health insurance, retirement plans, life insurance, and disability coverage. This increase is largely due to higher healthcare costs, requiring employers to pay greater premiums to provide sufficient coverage for their employees. For example, according to the Bureau of Labor Statistics, a US government agency, the proportion of private-sector workers receiving retirement benefits increased from 70% in March 2023 to 72% in March 2024. Consequently, the growth in employee benefit funding is supporting expansion in the corporate-owned life insurance market.

Key players in the corporate-owned life insurance market are focusing on innovative products designed to improve financial planning, maximize tax advantages, and offer greater business flexibility. These revamped corporate-owned life insurance (COLI) products feature enhancements such as customizable coverage options, simplified administration, and better cash value growth. For instance, in February 2023, Nationwide Business Solutions Group (NBSG), a US-based financial services and insurance provider, relaunched its COLI product through its Business Life Team. The updated offering includes streamlined underwriting, competitive pricing, and advanced policy management tools, helping businesses secure coverage for critical employees while optimizing long-term value. This effort also addresses changing corporate requirements and regulatory compliance.

In April 2024, Aviva plc, a UK-based insurance company, acquired AIG Life Limited from Corebridge Financial Inc. for $600.68 million (£453 million). This acquisition aims to strengthen Aviva’s position in the UK protection market, broaden its customer base, and support its capital-light growth strategy with significant strategic benefits. AIG Life Limited, based in the UK, specializes in corporate-owned life insurance and other business protection products.

Major players in the corporate owned life insurance market are MetLife Inc., Nationwide Mutual Insurance Company, Prudential Financial Inc., New York Life Insurance Company, Massachusetts Mutual Life Insurance Company, John Hancock Life Insurance Company, Lincoln National Corporation, American International Group, Inc., FWD Group, Voya Financial Inc., Zurich American Life Insurance Company, Pacific Life Insurance Company, Great-West Lifeco, Ameritas Life Insurance Corp., Mutual of America Life Insurance, American Fidelity Assurance, NGL Insurance Group, OneAmerica, Western & Southern Life, Securian Financial Group, Nationwide Business Solutions Group (NBSG).

North America was the largest region in the corporate owned life insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in corporate-owned life insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the corporate-owned life insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Corporate owned life insurance is a life insurance policy purchased and held by a company on the lives of its employees, usually focusing on key executives. The company is responsible for paying the premiums and acts as the policy’s beneficiary. This type of insurance typically provides financial protection to the business by covering losses resulting from the death of important personnel, funding employee benefits, or supporting business continuity plans such as buy-sell agreements.

The primary types of corporate owned life insurance include whole life insurance, term life insurance, universal life insurance, variable life insurance, and indexed universal life insurance. Whole life insurance provides lifetime coverage with fixed premiums and a guaranteed death benefit. These policies are customized based on factors such as age, gender, income, and marital status, with common reasons for purchase including family protection, investment purposes, debt repayment, funeral expenses, and tax advantages. Corporate owned life insurance is commonly used for key person insurance, employee benefits funding, buy-sell agreements, and executive compensation. Its end users span corporations, financial institutions, non-profit organizations, government bodies, and others.

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

The corporate-owned life insurance market includes revenues earned by entities through employee life insurance coverage, executive benefit funding, business continuity planning, and death benefit payout to the employer. 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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