Global Term Insurance Market Segmentation, By Type (Level Term Policy, Renewable or Convertible, Annual Renewable Term, and Mortgage Life Insurance), Level (Individual Level, Group Level, and Decreasing), Distribution Channel (Direct Channel and Indirect Channel) – Industry Trends and Forecast to 2031.
Term Insurance Market Analysis
The term insurance market is witnessing significant growth driven by advancements in technology and innovative methods. Artificial Intelligence (AI) and machine learning are revolutionizing underwriting processes. These technologies enable insurers to analyze vast amounts of data more efficiently, leading to more accurate risk assessments and personalized policy pricing. Telematics is another emerging trend, where data collected from wearable devices and smartphones helps insurers monitor policyholders' health and lifestyle, further tailoring policies and premiums.
Blockchain technology is enhancing transparency and security in claims processing. It streamlines administrative tasks, reduces fraud, and ensures accurate record-keeping, which contributes to overall market efficiency. Additionally, the use of digital platforms and mobile applications allows consumers to easily compare, purchase, and manage term insurance policies, increasing accessibility and customer engagement.
The term insurance market's growth is further supported by rising awareness of financial security and the increasing adoption of digital tools. As technology continues to advance, the market is expected to expand, offering more tailored solutions and improved customer experiences.
Term Insurance Market Size
The global term insurance market size was valued at USD 278.27 million in 2023 and is projected to reach USD 366.43 million by 2031, with a CAGR of 3.5% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
Term Insurance Market Trends
“Digital Transformation in Term Insurance”
A key trend driving growth in the term insurance market is the digital transformation of insurance services. Insurers are increasingly adopting technology to streamline the purchase process, enhance customer experience, and improve risk assessment. AI-driven chatbots and digital platforms are making it easier for customers to compare policies, receive personalized recommendations, and purchase term insurance online with minimal paperwork. Companies such as Policygenius and Lemonade are leveraging these technologies to offer seamless, user-friendly services that attract tech-savvy consumers. This shift towards digital solutions is expanding market reach and driving increased adoption of term insurance products. For instance, According to the American Council of Life Insurance's (ACLI) 2023 Life Insurance Fact Book, 39.3% of all new life insurance policies sold in 2022 were term insurance policies. This significant proportion highlights a trend toward greater adoption of term life insurance. The increasing preference for term policies is driving overall market growth, reflecting a shift in consumer choice toward more affordable and flexible insurance options.
Report Scope and Term Insurance Market Segmentation
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Attributes
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Term Insurance Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Xero Limited (New Zealand), AlfaStrahovanie Group (Russia), Brighthouse Financial Inc (U.S.), CNP Assurances (France), FWD Fuji Life Insurance Company, Limited (Japan), Great-West Lifeco Inc (Canada), ASSICURAZIONI GENERALI S.P.A (Italy), ICICI Prudential Life Insurance Co. Ltd (India), IndiaFirst Life Insurance Company Limited (India), Industrial Alliance Insurance and Financial Services Inc (Canada), John Hancock (U.S.), MetLife Services and Solutions, LLC (U.S.), OHIO NATIONAL SEGUROS DE VIDA SA (Spain), Ping An Insurance (Group) Company of China, Ltd (China), RBC Insurance Services Inc (Canada), SBI Life Insurance Company Limited (India), Sun Life Assurance Company of Canada (Canada), Tata AIA Life Insurance Company Ltd (India), Tokio Marine Holdings, Inc (Japan), Vitality (U.K.), and Zurich (Switzerland)
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Market Opportunities
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Value Added Data Infosets
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
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Term Insurance Market Definition
Term insurance is a type of life insurance that provides coverage for a specific period, known as the term, typically ranging from 10 to 30 years. During this term, if the insured person passes away, the policy pays a death benefit to the beneficiaries. It is generally more affordable than whole life insurance because it does not include a savings component or accumulate cash value. Term insurance is ideal for those seeking cost-effective coverage for financial responsibilities such as mortgages or dependents. If the insured survives the term, the policy expires without any payout, unless renewed or converted to a permanent policy.
Term Insurance Market Dynamics
Drivers
- Increased Awareness of Financial Security
Growing awareness about the importance of financial planning and security is a significant driver for the term insurance market. As individuals become more conscious of the need to safeguard their families' financial future in case of untimely death, the demand for term insurance rises. For instance, campaigns by insurance companies and financial advisors increasingly highlight the risks of insufficient coverage, leading to more people investing in term policies. A notable example is Prudential's "Bring Your Challenges" campaign, which educates the public on the benefits of term insurance, thereby boosting market growth. This heightened awareness and proactive approach to financial security are pivotal in driving market expansion.
- Growing Population of Working Professionals
The growing number of working professionals, particularly millennials and Gen Z, is significantly driving the term insurance market. As young professionals enter the workforce and begin to build careers, they increasingly recognize the importance of securing their families' financial futures. For instance, a report from the Insurance Information Institute highlights that millennials are increasingly purchasing term insurance to protect their dependents from potential financial burdens. This trend is supported by digital platforms offering easy access to insurance products, making it simpler for young professionals to acquire term insurance policies. Consequently, the expanding workforce contributes to the steady growth of the term insurance market.
Opportunities
- Changing Family Structures
As family structures shift towards more nuclear setups, with smaller, independent units rather than extended families, there's a growing need for individual financial protection. In nuclear families, where responsibilities and financial dependencies are concentrated on fewer members, term insurance becomes a critical tool for safeguarding the financial stability of loved ones in the event of the policyholder’s untimely death. For instance, In December 2023, Max Life Insurance Company Ltd. launched the Smart Total Elite Protection Plan, a modern term life insurance plan tailored to evolving consumer needs. This plan is non-linked and non-participating, focusing solely on risk coverage. It offers instant claim payments, cover continuance benefits, and a special exit value, meeting contemporary demands for greater financial security and comprehensive coverage solutions.
- Increase in Awareness about Insurance Products
Enhanced consumer awareness about various insurance products and their benefits significantly boosts the term insurance market. As individuals become more informed about the advantages of term insurance, including its affordability and simplicity compared to whole life insurance, they are more such asly to invest in such plans. For instance, insurance companies such as Prudential and LIC have launched extensive educational campaigns and digital tools to help consumers understand term insurance's value. These initiatives have successfully increased policy uptake by demystifying insurance products and highlighting their financial security benefits. This heightened awareness creates ample opportunities for market growth and innovation.
Restraints/Challenges
- Short-Term Coverage
Term insurance offers protection only for a fixed period, such as 10, 20, or 30 years. This limited timeframe can cause uncertainty among consumers regarding their long-term financial security. If policyholders outlive their term, they may face challenges in obtaining new coverage at higher rates due to age or health changes. This temporary nature of coverage can deter individuals who seek more permanent financial protection for their families. Consequently, the perception of inadequate long-term security and the potential for increased costs upon renewal can negatively impact the attractiveness and growth of the term insurance market.
- Health and Age Factors
Premiums for term insurance typically increase with age and pre-existing health conditions, making it less affordable for older individuals or those with health issues. As people age, the risk of mortality rises, leading insurers to charge higher premiums to mitigate risk. Similarly, individuals with health conditions may face significantly higher premiums or even face denial of coverage. This escalating cost can deter potential customers from purchasing term insurance, thus hindering market growth. The financial burden associated with higher premiums reduces the attractiveness of term insurance, particularly for those who may need it the most as they age or face health challenges.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Term Insurance Market Scope
The market is segmented on the basis of type, level and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Level Term Policy
- Renewable or Convertible
- Annual Renewable Term
- Mortgage Life Insurance
Level
- Individual Level
- Group Level
- Decreasing
Distribution Channel
- Direct Channel
- Direct Emails
- Call Centres
- Online Company Websites
- Indirect Channel
- Agency
- Brokers
- Online Aggregators
Term Insurance Market Regional Analysis
The market is analyzed and market size insights and trends are provided by type, level and distribution channel as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
Asia-Pacific is expected to dominate the term insurance market due to robust government initiatives promoting awareness and the region’s substantial middle-class population. These factors drive high demand for term insurance products as consumers seek affordable financial protection. Enhanced regulatory frameworks and targeted educational campaigns further bolster market growth across the region.
Europe is expected to expand at a significant growth rate in the term insurance market due to rising awareness and adoption. Increased consumer preference for affordable, short-term coverage options and favorable regulatory environments are driving market expansion. Additionally, technological advancements in policy management are enhancing customer experience and contributing to market growth.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Term Insurance Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Term Insurance Market Leaders Operating in the Market Are:
- Xero Limited (New Zealand)
- AlfaStrahovanie Group (Russia)
- Brighthouse Financial Inc (U.S.)
- CNP Assurances (France)
- FWD Fuji Life Insurance Company, Limited (Japan)
- Great-West Lifeco Inc (Canada)
- ASSICURAZIONI GENERALI S.P.A (Italy)
- ICICI Prudential Life Insurance Co. Ltd (India)
- IndiaFirst Life Insurance Company Limited (India)
- Industrial Alliance Insurance and Financial Services Inc (Canada)
- John Hancock (U.S.)
- MetLife Services and Solutions, LLC (U.S.)
- OHIO NATIONAL SEGUROS DE VIDA SA (Spain)
- Ping An Insurance (Group) Company of China, Ltd (China)
- RBC Insurance Services Inc (Canada)
- SBI Life Insurance Company Limited (India)
- Sun Life Assurance Company of Canada (Canada)
- Tata AIA Life Insurance Company Ltd (India)
- Tokio Marine Holdings, Inc (Japan)
- Vitality (U.K.)
- Zurich (Switzerland)
Latest Developments in Term Insurance Market
- In June 2023, Policygenius partnered with Labyrinth Financial Services (LFS), integrating Policygenius Pro into LFS's offerings. This collaboration simplifies the term life insurance application process for LFS partners, enhancing client experience with a streamlined fulfillment platform. The partnership aims to make term life insurance more accessible and user-friendly for clients
- In May 2023, New York Life introduced a range of competitively priced term life insurance products. These include level term, yearly renewable term, and options for additional living benefits, designed for both individuals and small business owners. The new suite aims to offer enhanced value and financial protection, helping clients prepare for uncertainties and seize opportunities
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