|Last Quarterly Update:||6/3/2013|
|SIC Codes:||6311, 6321|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|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 in the US include Aetna Life Insurance, AIG, and MetLife, as well as AEGON (the Netherlands), AXA (France), Nippon Life (Japan), and Prudential (UK).
Global life insurance premiums totaled more than $2 trillion in 2010, or nearly 4 percent of the global Gross Domestic Product (GDP), according to Swiss Re. Life insurance is in higher demand in stable, moderate to high-income countries, but demand is also rising in emerging economies in Latin America and Asia. Other regions such as Africa and the Middle East have seen lower penetration rates due to low income and different cultural and economic norms.
The US life insurance industry includes about 900 companies with annual revenue of about $450 billion; moderate growth is expected for the industry over the next two years. Demand drivers include demographics and the strength of the economy. Carriers face an aging population, which could result in rising claims. Success may depend on new financial products marketed to a demographic that is more dependent on retirement assets than previous generations.
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 ...
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