|Last Quarterly Update:||11/14/2016|
|SIC Codes:||6311, 6321|
|Industry Overview||Trends & Challenges||Industry Forecast|
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|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry underwrite life insurance and related products including annuities, long-term care, disability, and accidental death and dismemberment policies. Major companies include MetLife, New York Life, and Prudential Financial (all based in the US), as well as AEGON (the Netherlands), AXA (France), Nippon Life (Japan), and Prudential (UK).
Global life insurance premiums totaled more than $2.65 trillion in 2014, up 4.3% compared to 2013, when premiums declined by nearly 2%, according to Swiss Re. The return to growth pushed global life premiums above the pre-financial crisis average. Robust growth in Oceania, plus solid results in Western Europe and Japan, more than offset another year of contraction in North America. In emerging markets, life premiums grew 6.9% in 2014 compared to 3.6% the prior year. The rise was mainly driven by China, while premiums from other emerging regions experienced slower growth or even declined.
The US life insurance industry includes about 9,000 establishments (single-location companies and units of multi-location companies) with annual revenue of about $480 billion.
Demand is driven by demographics and the economy. The profitability of individual companies depends on effective marketing and investment strategies and on the ability to accurately estimate future payments. Large companies take advantage of economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by providing specialized services to communities and ...
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