Life insurance penetration in the US has been steadily decreasing from 2013 (3.2 units) to 2023 (2.68 units). The data shows consistent declines year-on-year, with a notable average decline of -1.49% CAGR over the last five years and a forecasted 5-year growth rate of -7.22%. The most recent two-year period, from 2022 to 2024, indicates continued slight decreases in penetration rates.
Future trends to watch for include technological advancements in insurance processes, which can increase accessibility and consumer interest; evolving consumer preferences toward more flexible and holistic financial solutions; regulatory changes; and economic factors influencing disposable income and thus insurance affordability and attractiveness.
