Global Life Insurance Providers Market Report 2020: Market was Valued at about $2951 Billion in 2018 and is Expected to Grow to $3586.96 Billion through 2022 - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Dec 9, 2019--
The “Life Insurance Providers Global Market Report 2020” report has been added to ResearchAndMarkets.com’s offering.
The global life insurance providers market was valued at about $2951 billion in 2018 and is expected to grow to $3586.96 billion at a CAGR of 5.0% through 2022.
The life insurance providers market consists of sale of life insurance policies. Life insurance providers enter into a legal contract with the insurance policy holder, where the insurer (life insurance provider) promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. The life insurance providers are primarily engaged in the pooling of risk by underwriting insurance (that is, assuming the risk and assigning premiums) and annuities.
North America was the largest region in the life insurance providers market in 2018, followed by Asia Pacific.
The rise in disposable income in emerging countries such as India and China is expected to drive the life insurance providers market. Economic growth in the middle income group translates to higher disposable income which allows them to invest in life insurance products. According to report by Swiss Re Institute’s, world’s seven largest emerging markets will contribute 42% of global growth with China contributing 27%. This rising disposable income, especially in emerging countries is expected to increase demand for life insurance plans thereby driving the life insurance providers market.
Lack of awareness about life insurance and complex insurance products are acting as a restraint on the life insurance providers market. A large number of people tend to invest in traditional investment instruments as they are unaware about the benefits of life insurance. According to a survey conducted by PHD Research Bureau in 2016, around 49% of the population in India is not familiar with insurance products and around 57% of the people find insurance products too complicated and difficult to understand. This lack of awareness and information proves to be a restraint on the life insurance providers market.
Robotic process automation and artificial intelligence have transformed the way in which business is done in the insurance industry. Robotic process automation and artificial intelligence are being used in the life insurance industry to accurately predict outcomes, improve customer service, guide the development of new products, detect risks and cross-promote products. For example, Aditya Birla Sun Life Insurance has launched DISHA 2.0, an Upgraded AI-Enabled ChatBot in 2018 to navigate personalized solutions for life insurance choices. These technological developments will enhance the customer experience and will drive the market.
Life insurance companies are monitored by regulatory bodies such as the National Association of Insurance Commissioners (NAIC) in the USA, the Prudential Regulatory Authority (PRA) in the UK, and the China Insurance Regulatory Commission in China. For instance, the China Insurance Regulatory Commission (the CIRC), established on November 18, 1998, is authorized by the State Council to conduct administration, supervision and regulation of the Chinese insurance market, and to ensure that the insurance industry operates stably in compliance with law. CIRC is responsible for licensing, developing regulations on administration of reinsurance business and measures on administration of life and health insurance.
CVS Health, a pharmacy company has acquired a life insurance company Aetna in 2018 for a total transaction value of $78 billion. The agreement between both the companies include enhanced consumer and health insurance rate protections, privacy controls, cybersecurity compliance. The merger will include new programs and services designed to target better, more efficient management of chronic disease using the capabilities of the merged company such as technology, data, and analytics. Aetna begins offering participating life insurance policies, which paid dividends to policyholders. Aetna was famous for its aggressive promotional strategies and higher commission rate for agents.
Major players in the market are Munich Re, AXA, Generali, Allianz and China Life Insurance Company Limited.
For more information about this report visit https://www.researchandmarkets.com/r/hzk29j
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INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: Research and Markets
Copyright Business Wire 2019.
PUB: 12/09/2019 12:43 PM/DISC: 12/09/2019 12:43 PM