Driven by rising global insurance penetration, evolving product innovation, and expanding demand for retirement and protection solutions, the life insurance market is poised for sustained growth through 2033. Strong premium performance, accelerating annuity adoption, digital transformation, and expanding coverage among underinsured and independent workers continue to reshape the industry’s long-term outlook.
Chicago, Jan. 29, 2026 (GLOBE NEWSWIRE) — The global life insurance market was valued at 7.59 trillion in 2024 and is expected to reach US$ 16.35 trillion by 2033, growing at a CAGR of 8.9% from 2025 to 2033.
A substantial underinsured population is creating a powerful opportunity within the life insurance market. An estimated 102 million U.S. adults recognize a personal demand for more life insurance coverage. Key segments driving this demand include 50 million middle-income Americans and 54 million women, who have identified specific gaps in their financial protection. The current scale is already vast, with 134.93 million individual policies in force and more than 118 million people covered by group plans in 2024. These figures point to a widespread and acknowledged demand for coverage, signaling a clear runway for growth.
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Life Insurance Market Gains Momentum from Evolving Product Structures
Economic strength and developing product structures of the life insurance market are actively fueling market expansion. Individual life insurance premiums reached a record US$ 16.2 billion in 2024, with forecasts anticipating a sustained high of at least US$ 15.9 billion. Consumers are also seeking more robust protection, evidenced by the average policy face amount rising to US$ 178,000 in 2025. The related market for individual annuities is also surging, projected to surpass a record US$ 400 billion in 2024. Supporting this growth, the digital insurance market is on track to expand by an estimated US$ 67.23 billion by 2028, providing new avenues to meet consumer needs.
Independent Workforce Drives New Life Insurance Opportunities Beyond Employer Benefits
The explosive growth of the independent workforce is carving out a new, high-potential demand segment within the life insurance market. The number of U.S. gig workers is projected to hit 90 million by 2025, representing a massive group historically cut off from conventional employer-sponsored benefits. To serve them, 25 new dedicated insurtech APIs were launched in 2024 to facilitate integration with gig platforms. Investment is following, with the average Series A funding for gig-focused insurtechs reaching US$ 8 million in the first quarter of 2025. Insurers also established 40 new data-sharing agreements with major gig economy companies in 2024 to streamline offerings.
The result is a more accessible and tailored product terrain. Automated underwriting systems in the life insurance market processed 200,000 applications for freelancers in 2024, showing scalability. Demand is projected to generate 1.5 million new policies for gig workers in 2025, with an average initial coverage amount of US$ 150,000. True innovation is seen in portability, with 50,000 workers transferring their policies between platforms in 2024. Products are also more specific, with 100,000 policies bundled with disability riders for income protection. Momentum is further supported by a favorable regulatory environment, with 8 states operating active portable advantages pilot programs.
Annuities Capture Growing Share of Consumer Investment Amid Retirement Demand
The annuity premiums and deposits segment asserted its dominance in the life insurance market, commanding a significant share of consumer investment in 2024. A primary reason for its ascendancy is the growing wave of retirees looking for reliable and guaranteed income streams to safeguard their financial future against market volatility. Total annuity sales hit a record US$ 432.4 billion in 2024, a substantial growth from the previous year. The momentum continued into the first half of 2025, which saw total sales of US$ 223 billion.
Fixed-indexed annuity (FIA) sales were a major contributor, reaching a record US$ 125.5 billion in 2024. Registered Index-Linked Annuities (RILAs) also saw robust growth, with sales hitting US$ 65.2 billion in 2024, marking an 11th consecutive year of growth. Conventional variable annuity (VA) sales experienced their first growth in three years, jumping to US$ 61.2 billion. Even income annuities reached new highs, with Single Premium Immediate Annuity (SPIA) sales totaling US$ 13.6 billion and Deferred Income Annuity (DIA) sales reaching US$ 4.9 billion in 2024.
This remarkable growth reflects a fundamental change in consumer priorities within the life insurance market. The demand for protection-based solutions remains exceptionally high, driving competition and innovation. In the second quarter of 2025 alone, annuity sales reached a record US$ 116.6 billion. During that same quarter, RILA sales were US$ 19.6 billion, and fixed-rate deferred annuities brought in US$ 44.2 billion. Fixed indexed annuities held steady at US$ 31.4 billion in Q2 2025, while traditional variable annuities saw sales of US$ 14.7 billion. Looking forward, projections for total annuity sales in 2025 range between US$ 364 billion and US$ 410 billion, signaling sustained strength. The combined sales for annuities from 2022 to 2024 topped an impressive US$ 1.1 trillion.
Life Insurance Stability in North America Backed by Strong Earnings and Record Claims Payments
North America commands the global life insurance market with over 32.20% market share, a position defined by immense financial scale and advanced market dynamics. In the first half of 2024, U.S. life insurers reported US$ 18 billion in net income and collected US$ 700 billion in direct premiums and deposits. Total benefits and claims paid to policyholders in the U.S. reached a staggering US$ 965.6 billion in 2024. The industry’s stability is further underscored by its asset base, with U.S. life insurers holding US$ 5 trillion in cash and invested assets. Private equity-owned insurers are a significant force, holding US$ 704.3 billion in assets at the close of 2024.
The life insurance market’s sophistication is evident in its investment strategies and technological adoption. Private equity-owned insurers increased their investments in alternative assets to US$ 43.1 billion in 2024. The U.S. industry’s total capital and surplus stood at US$ 507 billion after the first six months of 2024, showing robust financial health. In Canada, insurers are rapidly integrating technology, with a notable emphasis on AI for underwriting and digital platforms to enhance customer service. This tech-forward approach is crucial for managing the enormous scale of business, such as the US$ 106 billion in net cash from operations reported by U.S. life insurers in the first half of 2024.
Life Insurance Market Major Players:
- AXA Group
- China Life Insurance Company
- Chubb Limited
- Cigna
- MetLife, Inc.
- New York Life Insurance Company
- Northwestern Mutual
- United Health Group
- Prudential Financial
- Ping An Insurance Group
- Other Prominent Players
Key Market Segmentation:
By Type
- Life Insurance Premiums
- Annuity Premiums and Deposits
- Accident and Health Premiums
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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