Asia-Pacific is poised to lead the global universal life insurance market, with a remarkable compound annual growth rate (CAGR) of 29.7%, as insurers in China and India embrace mobile telematics technology. This growth places the region ahead of others in terms of market expansion, according to a recent report by Allied Market Research.
The global market is expected to grow at a more moderate CAGR of 9.3%, reaching a projected value of $280.4 billion by 2032. In 2022, the market generated $117.5 billion in revenue.
Key drivers behind this growth include an increasing adoption of cost-effective insurance plans, which offer the benefit of accumulating cash value over time. Additionally, factors such as estate planning and wealth transfer continue to support the market’s expansion.
Despite the positive outlook, challenges such as sensitivity to interest rates and the complexity of universal life insurance products may impede further growth. Nonetheless, rising demand for comprehensive financial planning solutions is expected to present new opportunities in the sector.
The indexed universal life insurance segment, which accounts for nearly 60% of the market share, has been a significant contributor to this growth, driven by features such as income guarantees and accelerated death benefits. Meanwhile, the guaranteed universal life insurance segment is forecasted to grow at a CAGR of 12.2% from 2023 to 2032, largely due to increasing demand for stability in life insurance coverage.
When it comes to distribution, brokers and agents dominated the market in 2022, holding nearly 60% of the total revenue share. However, the banking sector is expected to experience the highest growth rate of 13.5% through 2032, fueled by the ongoing integration of financial services.
Related topics
