Corporate Owned Life Insurance Market Report 2026

The corporate owned life insurance market size has grown strongly in recent years. It will grow from $985.45 billion in 2025 to $1.05 trillion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increasing awareness of key employee risk, expansion of executive benefit programs, growing adoption of buy-sell agreements, rising corporate tax planning needs, long-term use of life insurance as balance sheet assets.

The corporate owned life insurance market size is expected to see strong growth in the next few years. It will grow to $1.36 trillion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing demand for structured employee benefit solutions, rising use of coli in succession planning, expansion of customized insurance products, growing focus on regulatory transparency, continued integration of insurance with corporate financial strategies. Major trends in the forecast period include increasing use of coli for key person risk management, rising integration with executive compensation planning, growing focus on tax-efficient insurance structures, expansion of policy portfolio optimization, enhanced use of data analytics in policy design.

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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the corporate owned life insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the corporate owned life insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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