Annuity Market Report 2024

This Annuity market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The annuity market size has grown strongly in recent years. It will grow from $5.74 billion in 2023 to $6.08 billion in 2024 at a compound annual growth rate (CAGR) of 5.9%. The growth during the historic period can be attributed to increasing life expectancy, rising disposable income, growing concerns about the solvency of social security systems, a higher number of retirees, and an expansion in the number of financial advisors.

The annuity market size is expected to see strong growth in the next few years. It will grow to $7.68 billion in 2028 at a compound annual growth rate (CAGR) of 6%. The anticipated growth during the forecast period can be attributed to the expanding aging population, greater adoption of digital platforms, increasing popularity of variable annuities, rising healthcare costs affecting retirement planning, and ongoing innovations in annuity products. Key trends expected include technological advancements, the adoption of blockchain technology, digital annuity platforms, hybrid annuity products, and the use of robo-advisors.

The growing demand for insurance is anticipated to drive the expansion of the annuity market. The heightened need for insurance is driven by increased awareness of financial protection, rising uncertainties, and the necessity to guard against various risks such as health issues, life events, property damage, and business disruptions. Annuities are a key insurance product that offers policyholders a guaranteed income stream, usually during retirement, ensuring long-term financial stability. For example, Allianz SE, a Germany-based financial services company, reported in May 2023 that the global insurance industry grew by 7.5% in 2023, marking its fastest growth since before the Global Financial Crisis (GFC). Insurers worldwide generated €6.2 trillion ($6.7 trillion) in premiums across different segments, including life insurance (€2,620 billion or $2.83 trillion), property and casualty insurance (€2,153 billion or $2.32 trillion), and health insurance (€1,427 billion or $1.54 trillion). This rising insurance demand is consequently driving the growth of the annuity market.

Companies in the annuity market are focusing on developing innovative products, such as long-term, tax-deferred retirement plans, to maintain a competitive advantage. These financial instruments are designed to help individuals save and invest for retirement while deferring taxes on the investment growth until withdrawals begin. They are structured to accumulate funds over an extended period, allowing for compounded growth without immediate tax implications. For instance, in May 2024, Guardian Life Insurance Company of America, a US-based insurer, introduced the Guardian MarketPerform, a Registered Index-Linked Annuity (RILA). This new product aims to improve retirement planning by offering a balance between growth potential and market risk protection, addressing concerns many Americans have about their retirement savings.

In May 2024, Brookfield Reinsurance, an insurance company based in Bermuda, acquired American Equity Investment Life Holding Company (AEL) for $4.3 billion. This acquisition enhances Brookfield Reinsurance’s insurance operations by integrating AEL’s prominent fixed annuity business. American Equity Investment Life Holding Company (AEL), a US-based insurance firm, specializes in developing and selling annuity and life insurance products through its subsidiaries.

Major companies operating in the annuity market are New York Life Insurance Company, TIAA-CREF Life Insurance Company, Massachusetts Mutual Life Insurance Company, USAA Life Insurance Company, Corbridge Financial, Lincoln National Life Insurance Company, Pacific Life Insurance Company, Jackson National Life Insurance Company, Athene Annuity and Life Company, Brighthouse Financial Inc., Western & Southern Life Assurance Company, F&G Annuities & Life Inc., Allianz Life Insurance Company of North America, ICICI Prudential Life Insurance Company Limited, Ameritas Life Insurance Corporation of New York, American National Insurance Company, Global Atlantic Financial Group, Atlantic Coast Life Insurance Company, Securian Life Insurance Company, OneAmerica Financial Partners Inc., Aspida Life Insurance Company, CL Life and Annuity Insurance Company, Clear Spring Life and Annuity Company, Nationwide Mutual Insurance Company.

North America was the largest region in the annuity market in 2023. The regions covered in the annuity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the annuity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An annuity is a financial product that provides a series of payments made at regular intervals over a specified period. Often used as a retirement income solution, annuities can be structured to provide payments for either a fixed term or the lifetime of the annuitant. Payments can be immediate, starting soon after the investment, or deferred, beginning at a future date.

The main types of annuities include immediate annuities, deferred annuities, fixed annuities, and variable annuities. Immediate annuities begin making regular payments to the annuitant either immediately or shortly after a lump sum payment is made. Annuities are distributed through various channels such as insurance agencies, brokers, and banks, and are suitable for different life stages, including childhood, adulthood, and retirement.

The annuity market research report is one of a series of new reports that provides annuity market statistics, including annuity industry global market size, regional shares, competitors with a annuity market share, detailed annuity market segments, market trends and opportunities, and any further data you may need to thrive in the annuity industry. This annuity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The annuity market includes revenues earned by entities by providing services such as claims processing, payment management, investment management, and consultation and planning. The market value includes the value of related goods sold by the service provider or included within the service offering. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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