The net premium of life insurance in the US exhibited fluctuating trends from 2013 to 2023. The highest premium value was observed in 2015 at $151.4B followed by a significant drop in 2016. From 2017 onward, premiums showed a moderate but gradual increase, reaching $132.56B in 2023. Similarly, year-on-year variations indicated volatility with highs in 2015 (+13.07%) and lows in 2016 (-24.02%). Over the last two years (2022-2023), an upward trend was noted with growth rates of 6.03% and 0.71% respectively. However, a longer perspective reflects a conservative 5-year CAGR of approximately 0.75% which is expected to settle at 0.53% CAGR over the next five years, resulting in a 2.69% growth from 2024 to 2028.
Future trends to watch for include:
- Technological advancements in life insurance underwriting and claims processing.
- Demographic shifts and their impact on demand for life insurance products.
- Regulatory changes and their implications for insurance pricing and offerings.
- Economic factors and their influence on consumer spending power and investment in life insurance products.