|Last Quarterly Update:||11/25/2013|
|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 $2.6 trillion in 2012, up 2.3 percent from the year before, according to Swiss Re. Demand rose in mature markets such as the US, Japan, and Hong Kong, but continued to slump in Western Europe. Among emerging markets, Latin America and Eastern Europe saw the strongest growth in premiums. Demand was flat in China, which nevertheless remains a key market for the industry because of the size of the country's population.
The US life insurance industry includes about 900 companies with annual revenue of about $450 billion. 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 administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by providing ...
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