DUBLIN--(BUSINESS WIRE)--The "Whole Life Insurance Global Market Report 2020" report has been added to ResearchAndMarkets.com's offering.
The global whole life insurance market was valued at about $2600 billion in 2018 and is expected to grow to $3526.8 billion at a CAGR of 7.9% through 2022.
The whole life insurance providers market consists of sales of whole life insurance products that provide guaranteed death benefits during the entire life of the policyholder. Clients of these insurance providers are the general public who buy life insurance policies, either through an intermediary or direct selling.
The rise in disposable income in emerging countries such as India and China is expected to drive the whole life insurance market. Economic growth in the middle income group translates to higher disposable income which allows them to invest in whole life insurance products. According to Swiss Re Institute's sigma report, the 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 whole life insurance plans driving market growth.
Lack of awareness about life insurance and complex insurance products are acting as a restraint on the whole life insurance market. A large number of people tend to invest in traditional investment instruments as they are unaware about the benefits of whole 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. Thus, lack of awareness is acting as a restraint on the whole life insurance market.
Whole life insurance companies are increasingly investing in artificial intelligence and automation technologies for faster claims processing. Artificial intelligence (AI) is a simulation of human intelligence processes used by machines, commonly computer systems, to process and automate large amounts of data. Whole life insurance companies process large number of claims, customer queries and large amounts of diverse data that are being simplified using automation technologies.
Artificial intelligence is being used by insurance companies to provide coverage personalization, and faster and customized claim settlement. For instance, major insurance companies such as AXA and Generali have invested in artificial intelligence and automation technologies to simplify business operations and enhance customer experience.
Life insurance companies are monitored by regulatory bodies such as the National Association of Insurance Commissioners (NAIC) in the USA and the Prudential Regulatory Authority (PRA)in the UK. For instance, insurance companies in the EU are required to follow the General Data Protection Regulation (GDPR) which creates guidelines on collecting and processing personal data of individuals within the EU. Life insurance companies can be fined upto 4% of their annual turnover for data violation. In case of a data breach, customers are required to be notified within 72 hours after the company is aware of the breach.
In 2018, Phonix Group acquired the entire life assurance business of Standard Life Aberdeen for $3.2 billion. The deal is expected to strengthen long term partnership between the two companies and expand business.
Major players in the market are Allianz, Assicurazioni Generali, China Life Insurance, MetLife, PingAn
Other Companies Mentioned
- AXA
- CPIC
- Aviva
- Munich Re Group
- Zurich Financial Services
- Nippon Life Insurance
- AIG
- Prudential PLC
- Japan Post Holdings
- Berkshire Hathaway
- Manulife Financial
- Chubb
- Allstate
- Swiss RE
- Prudential Financial
- Travelers
- AIA
- Aflac
- Legal & General
- Sumitomo Life Insurance
- Aegon
- Dai-ichi Mutual Life Insurance
- Gerber Life Insurance
For more information about this report visit https://www.researchandmarkets.com/r/9p7a0m
