Unit-linked insurance market to reach $2.3t by 2032

The market is forecasted to reach a CAGR of 10.9%. 

The unit-linked insurance market was valued at $906.9b in 2023 and is estimated to reach $2.3t by 2032 globally, expanding at a compound annual growth rate (CAGR) of 10.9% from 2024 to 2032, according to Allied Market Research’s report. 

The factors affecting the unit-linked insurance market include a rise in the adoption of unit-linked insurance services amongst individuals and an increase in development strategies by public and private companies, which propel the market growth. 

However, the report noted that enforcement of strong rules by banks and financial institutions for providing unit-linked insurance services can hinder the market growth. 

Based on the mode, the online segment held the highest market share in 2023, attributed to the increasing adoption of digital channels by consumers, the convenience of online platforms, and the ability to compare different ULIP plans easily.

Meanwhile, based on the distribution channel, the banking segment held the highest market share in 2023 due to the extensive reach and trust that banks have established with their customers over the years. 

The report said that banks were able to leverage their existing customer base, and distribution networks, and established financial advisory services to market and sell unit-linked insurance plans (ULIPs).

Based on region, North America held the highest market share in terms of revenue in 2023 and is expected to boost in terms of revenue throughout the forecast timeframe. 

Well-developed infrastructure is accelerating the adoption of the most recent technologies, including unit-linked insurance in North America. 

A ULIP is an insurance plan that offers the dual benefit of investment to fulfil long-term goals and life cover to financially protect the family in case of an unfortunate event.