Term life insurance sector slated for 8.7% CAGR through 2032

Regionally, Asia-Pacific is projected to see the strongest growth by 2032.

The term life insurance market is projected to accumulate $2.4t by 2032, averaging a compound annual growth rate of 8.7% from 2024 to 2032, according to an Allied Market Research report.

Regionally, Asia-Pacific is projected to see the strongest growth by 2032. 

Factors contributing to this include a rising middle class, growing disposable income, and increasing awareness of the need for life insurance across the region. 

Economic development and stronger financial literacy are expected to further support market expansion in countries such as India, China, and Southeast Asian nations.

The global industry was valued at $1.1t in 2023.

In terms of insurance type, individual-level term life insurance accounted for over 60% of total market revenue in 2023. 

Its popularity is attributed to customizable coverage options, allowing individuals to select policy durations, sum assured, and riders based on personal financial needs. 

Despite this, group-level term life insurance is projected to record the highest CAGR through 2032. 

This growth is driven by demand from employers and organisations offering cost-effective life cover for large employee bases, with simplified underwriting and affordable premiums.

On the distribution side, tied agents and physical branches represented the largest channel in 2023, making up more than three-fifths of global revenue.