Equity Indexed Life Insurance Market Report 2025

This Equity Indexed Life Insurance market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The equity indexed life insurance market size has grown rapidly in recent years. It will grow from $3.99 billion in 2024 to $4.55 billion in 2025 at a compound annual growth rate (CAGR) of 13.9%. The growth in the historic period can be attributed to product diversification and customization, demand for cash value growth, market expansion and competitive landscape, response to low-interest rates, and evolution of indexed products.

The equity indexed life insurance market size is expected to see rapid growth in the next few years. It will grow to $7.37 billion in 2029 at a compound annual growth rate (CAGR) of 12.8%. The growth in the forecast period can be attributed to market volatility mitigation, increasing demand for retirement planning, innovative product offerings, rise in consumer awareness, regulatory landscape changes. Major trends in the forecast period include product innovation and hybrid solutions, integration of ESG (environmental, social, and governance) factors, education and transparency, focus on accumulation and cash value growth, risk mitigation strategies.

The growth trajectory of the equity indexed life insurance market is anticipated to be propelled by an increased accessibility to insurance products and services. The ease of access to insurance has seen a notable surge, particularly through amplified online sales of life and health insurance. This trend aligns with the rising popularity of equity indexed life insurance due to its comparatively lower premiums compared to whole life insurance. Notably, recent data from the Insurance Information Institute in January 2022 indicated an expected year-on-year rise in property or casualty insurer replacement costs between 4.5% and 6.5% in 2023. Furthermore, the National Association of Insurance Commissioners reported a substantial 2.7% climb in the insurance market for 2021, amounting to $29.8 billion, with a remarkable 8.2% growth in total premium collection nationwide across all business lines from 2020. This increased access to insurance offerings drives the expansion of the equity indexed life insurance market.

Economic expansion stands poised to play a pivotal role in propelling the growth of the equity-indexed life insurance market. The sustained growth of a country's GDP signifies economic advancement, fostering consumer confidence and incentivizing investment. This economic upswing often prompts individuals to seek financial products that provide both protection and growth potential, making equity-indexed life insurance an attractive option with its guaranteed minimum interest rates and market participation. Forecasts from the Organization for Economic Co-operation and Development in June 2023 projected modest GDP growth of 0.3% in 2023 and a moderate improvement to 1% in 2024 for the UK. This burgeoning economic growth acts as a driving force behind the expansion of the equity indexed life insurance market.

Leading companies in the equity-indexed life insurance market are concentrating on developing advanced technological features, such as the index lock, which allows policyholders to secure or lock in the value of an index at a specific moment. The index lock enables policyholders to capture the current value of an index within a defined period, helping them to secure gains or mitigate losses in volatile markets. For example, in July 2024, Allianz Life, a life insurance company based in the U.S., introduced the Allianz Life Accumulator Indexed Universal Life (IUL) Insurance Policy. This new product provides enhanced accumulation potential, flexible loan options, and innovative index lock features to improve risk management. It also includes three new index options: the S&P 500 Futures Index ER, the Blended Futures Index, and the Bloomberg US Dynamic Balance III ER Index. Additionally, the policy offers customizable features, including tax-deferred accumulation, death benefits, and accelerated death benefit riders for chronic or terminal illnesses.

Leading companies in the equity-indexed life insurance market are emphasizing the development of innovative solutions like indexed universal life (IUL) insurance, which offers flexible premiums and growth potential linked to stock market indices. For example, in January 2024, Ameritas Life Insurance Corp., a mutual insurance company based in the U.S., introduced a new IUL product exclusively. This product seeks to simplify life insurance by merging protection with cash value accumulation that is connected to stock market indices, showcasing a trend toward integrated investment opportunities.

In July 2022, Chubb Limited, a Switzerland-based company offering insurance products and services, completed the acquisition of Cigna Corporation's health and life insurance business for $5.36 billion. This strategic move enables Chubb to expand its presence significantly within the Asia-Pacific region. Cigna Corporation, a US-based healthcare and insurance company, operates within the domain of equity-indexed life insurance, making this acquisition a valuable addition to Chubb's portfolio and regional growth strategy.

Equity-indexed life insurance is a form of permanent life coverage tied to a stock market index for investment purposes, offering a more intricate structure compared to other permanent life insurance plans. Potential investors are advised to comprehend its mechanics before making commitments.

The primary types of equity-indexed life insurance include whole life insurance, universal life insurance, variable universal life insurance, indexed universal life insurance, among others. Whole life insurance is a form of permanent coverage with a savings component that accrues cash value. Distribution channels for these insurance types encompass agencies, brokers, bancassurance, as well as digital and indirect channels, available both online and offline.

The equity indexed life insurance market research report is one of a series of new reports that provides equity indexed life insurance market statistics, including equity indexed life insurance industry global market size, regional shares, competitors with an equity indexed life insurance market share, detailed equity indexed life insurance market segments, market trends and opportunities, and any further data you may need to thrive in the equity indexed life insurance industry. This equity indexed life insurance 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.

Major companies operating in the equity indexed life insurance market include AXA Equitable Life Insurance Company, Ping An Insurance Group Company of China Limited, Swiss Reinsurance Company Ltd., Prudential Financial Inc., American International Group Inc. (AIG), AIA Group Limited, Berkshire Hathaway Inc., MetLife Inc., Assicurazioni Generali S.p.A., Zurich Insurance Group AG, Munich Reinsurance America Inc., Chubb Limited, The Allstate Insurance Company, Aviva plc, Manulife Financial Corporation, China Pacific Insurance (Group) Co. Ltd., Aflac Incorporated, John Hancock Financial, Mutual of Omaha Insurance Company, The Penn Mutual Life Insurance Company, Progressive Casualty Insurance Company, Protective Life Corporation, Symetra Life Insurance Company, Minnesota Life Insurance Company, National Life Group, Pacific Life Insurance Company, Tata AIG General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, The Guardian Life Insurance Company of America, Massachusetts Mutual Life Insurance Company, New York Life Insurance Company.

North America was the largest region in the equity indexed life insurance market in 2024. The regions covered in the equity indexed life insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the equity indexed life insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The equity-indexed life insurance market includes revenues earned by entities by providing equity-indexed life insurance policies with coverage for death benefits, debts, lost income, educational finance, and medical expenses. 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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