Universal life insurance market to reach $132.3b by 2033

Countries like China, India, and Japan are leading in APAC.

The universal life insurance market is projected to register a compound annual growth rate (CAGR) of 8.1% from 2024 to 2033, according to Allied Market Research.

The market was valued at $59.7b in 2023 and is forecasted to bag $132.3b in 2033.

The industry’s growth will likely be driven by demand for combined investment and protection products, favourable tax benefits associated with universal life insurance and a  rise in the need for long-term financial planning amid uncertain economic conditions.

“However, market volatility, interest rate fluctuations, and stringent compliance requirements pose potential restraints. Nevertheless, the rise of Insurtech innovations, personalised policy offerings, and integration with retirement planning solutions present significant opportunities for market players,” the report stated.

Asia-Pacific will also see rapid growth in the universal life insurance market, influenced by the rise in financial inclusion, urbanisation, and technological advancements.

“Countries like China, India, and Japan are leading the market, where government policies encourage increased insurance penetration,” the report added.