About Permanent Life Insurance
Permanent life insurance is a form of life insurance policy which do not expire through the lifespan with the death benefits, cash value, and saving portion. It is available in four types of whole life insurance, universal life insurance, variable universal life insurance, and indexed universal life insurance. It offers coverage for the full lifetime of the insured and grows at a guaranteed rate. The permanent life policy has a premium with a fixed rate that can be higher than the term life. The permanent life insurance market is expected to grow in the coming years, driven by increasing awareness, growing affluence, and a shift in demographics. However, the industry will need to address challenges such as high costs, complexity, and lack of financial literacy to continue its growth trajectory.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 7.1% |
The global market is highly competitive and consists of a limited number of providers competing. The intense competition, changing consumer spending patterns, demographic trends, and frequent changes in consumer preferences pose significant opportunities for market growth. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Permanent Life Insurance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
MetLife, Inc. (United States), Legal & General Group plc (United Kingdom), Berkshire Hathaway Inc. (United States), Allianz SE (Germany), Allstate Corporation (United States), Chubb (United States), American International Group (United States), Axa S.A. (France), Fidelity National Financial, Inc. (United States) and Aflac Inc. (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Prudential Financial, Inc. (United States), AIA Group Limited (Hong Kong) and Guardian Life Insurance Company (United States).
Segmentation Overview
AMA Research has segmented the market of Global Permanent Life Insurance market by Type (Whole Life Insurance (Non-Participating Whole Life Insurance, Participating Whole Life Insurance), Universal Life Insurance, Variable Universal Life Insurance and Indexed Universal Life Insurance) and Region.
On the basis of geography, the market of Permanent Life Insurance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Sales, the sub-segment i.e. Agency will boost the Permanent Life Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End User, the sub-segment i.e. Individual will boost the Permanent Life Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Consumption of Permanent Life Insurance among the Working-Class People
Market Growth Drivers:
Demand for Insurance Policies that do not Expire Covering Lifetime of Savings and Easy Availability of Life Insurance Policies with the Death Benefits and Cash Value
Challenges:
High-Cost Insurance Premium Rates Involved in Permanent Life Insurance Market
Restraints:
Regulatory Compliances and Standards Involved with Permanent Life Insurance Market
Opportunities:
Surging Demand for Permanent Life Insurance from Developing Countries and Growing Awareness about the Permanent Life Insurance Market
Market Leaders and their expansionary development strategies
On 1st March 2021, The Guardian Life Insurance Company of America (Guardian Life) announced an alliance with Protective Life Insurance Company to make Protective Lifetime Assurance Universal Life available through Guardian's financial representatives. The product allows clients to lock in competitively priced premiums for the life of their policy and offers level pricing with the longevity of permanent life insurance. Policyholders can also recoup a portion of their paid premiums, at no added cost, starting at year ten if they decide to cancel the policy.
On 14th October 2021, Fidelity & Guaranty Life Insurance Co. acquired a 30 percent stake in Freedom Equity Group — an independent marketing organization that focuses on the sale of index universal life (IUL) insurance and index annuities. F&G says it’s acquiring the Arroyo Grande, California-based IMO to diversify by expanding sales of IUL policies to middle-income consumers.
State-Level Regulation: The insurance industry is primarily regulated at the state level by individual state insurance departments. These departments oversee the industry and ensure that insurance companies have the financial resources to meet their obligations to policyholders., and National Association of Insurance Commissioners (NAIC): This organization is not a regulatory body itself, but it comprises chief insurance regulators from all states. The NAIC works to establish best practices and promote uniformity in insurance regulations across different states to protect consumers.
Key Target Audience
Permanent Life Insurance Providers, Permanent Life Insurance Industry Association, Financial Investors/Banks/Association, Regulatory Bodies, Research and Development Institutes and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.