The Life and Annuity Insurance Market is anticipated to expand at a CAGR of 8.8% from 2025 to 2031. The rise in direct-to-consumer sales and the growing integration of advanced technologies will fuel the growth of the life and annuity insurance market in the forecasted period.
The report includes growth prospects owing to the current life and annuity insurance market trends and their foreseeable impact during the forecast period. As both life insurance and annuities help to delay taxes on earnings, it has become one of the major factors boosting the growth of the life and annuity insurance market. In addition, this insurance provides a guaranteed regular income to the policyholder in an exchange for a large payment made to the insurance company. Furthermore, the growing integration of technology and tailored messaging is creating an opportunity for the growth of the market in the forecasted period. Moreover, the focus of agency distribution is being shifted to the wealthy market, which is making room for both new and established insurance carriers in the individual market. Such a rise in direct-to-consumer sales is expected to propel the growth of the life and annuity insurance market.
Life insurance is usually used to reimburse heirs after the insured passes away. Whereas an annuity develops users investments and provides income while they are still living. However, annuities can contain a death benefit payment, and many life insurance policies allow users to accumulate funds while they are still living. There are several types of life insurance coverage. Term life insurance only offers a death benefit. Permanent life insurance policies can provide coverage for the rest of the users life. In addition, permanent insurance accrues cash value that can be withdrawn over the lifetime. The interest rate paid by a whole life insurance policy is set. Additionally, a user can invest in subaccounts, such as mutual funds, with a variable life insurance policy; his growth is contingent upon the performance of his assets.
You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities
Life and Annuity Insurance Market: Strategic Insights
Life insurance and annuities are two sorts of tax-advantaged financial instruments that can assist protect the insurer and his loved ones. Annuities provide a stream of income in exchange for a lump-sum payment, whereas life insurance offers a large sum in exchange for a continuous stream of premium payments. Generally, the death benefit is given to heirs tax-free. Estates that are liable to inheritance or estate tax are the primary exception. If life insurance proceeds are kept in an account for a while after the insured passes away, some of them may be subject to taxes. The interest received from the death benefit is taxable if it accrues interest prior to being disbursed to a beneficiary. Similarly, the popularity of certificates of deposit (CDs) can be attributed to their safety and guaranteed rate of return. But those rates of return might not be able to keep up with inflation during a period of low interest rates. According to Bankrate LLC, as of December 2023, CDs have an average rate of 1.73% for a one-year term, which is significantly lower than ordinary inflation rates, making interest rates on annuities more generous. Thus, all the above benefits of insurance are driving the life and annuity insurance market growth.
The scope of the Life and Annuity Insurance Market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant life and annuity insurance market share. The region's significant economic development, growing population, and increasing focus on financial inclusion across diverse economies have contributed to this growth. Furthermore, the growing awareness of individuals regarding the benefits of life and annuity insurance is fueling the market growth in the region. In addition, the growing adoption of technologies like data analytics, AI, and others is further creating an opportunity for the life and annuity insurance market growth in the region.
The regional trends and factors influencing the Life and Annuity Insurance Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Life and Annuity Insurance Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ XX million |
| Market Size by 2031 | US$ XX Million |
| Global CAGR (2025 - 2031) | 8.8% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Insurance Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Life and Annuity Insurance Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Life and Annuity Insurance Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The "Life and Annuity Insurance Market Analysis" was carried out based insurance type and geography. On the basis of insurance type, the market is segmented into individual insurance, annuity insurance, endowment insurance, whole life insurance, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the life and annuity insurance market. A few recent key market developments are listed below:
[Source: Northwestern Mutual, Company Website]
The Life and Annuity Insurance Market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Life and Annuity Insurance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
Growing awareness regarding the benefits of insurance is the major factors that propel the global life and annuity insurance market.
The Life and Annuity Insurance Market is anticipated to expand at a CAGR of 8.8% from 2023 to 2031.
The growing integration of advanced technologies is anticipated to play a significant role in the global life and annuity insurance market in the coming years.
The key players holding majority shares in the global life and annuity insurance market are The Northwestern Mutual Life Insurance Company, Allianz Life Insurance Company, AXA SA, Berkshire Hathaway Life, and American International Gro Inc.
The global life and annuity insurance market is expected to reach US$ 7248.31 billion by 2031.