| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 1.40 Trillion |
| Market Size (2030) | USD 2.15 Trillion |
| CAGR (2025 - 2030) | 8.92 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Term Insurance Market Analysis
The Term Insurance Market size is estimated at USD 1.40 trillion in 2025, and is expected to reach USD 2.15 trillion by 2030, at a CAGR of 8.92% during the forecast period (2025-2030).
- The term insurance market has witnessed significant growth worldwide, driven by increasing awareness of the importance of financial security and the need for affordable life insurance options. As people are becoming more aware of the need to plan for the future, the demand for term insurance, which offers coverage for a specified period, has been on the rise. Term insurance policies typically offer low premiums compared to whole or universal life insurance, making them attractive to young professionals, families, and individuals seeking cost-effective solutions. Additionally, the rise of digital platforms and online policy purchases has further accelerated the market growth, offering convenience and easy access to products.
- In terms of trends, one of the most notable is the increasing adoption of digitalization by insurance companies. Consumers are increasingly opting for online purchases, digital policy management, and even claims filing, leading to the development of user-friendly mobile apps and websites by insurance providers. Additionally, there is a growing trend toward personalized term insurance policies, with companies offering flexible plans that allow policyholders to customize coverage based on their needs. The younger generation, in particular, is seeking flexible policies with riders such as critical illness or accidental death benefits, as well as those that can be adapted to life changes.
- The term insurance market presents several opportunities for growth. One significant opportunity is the under-penetration of life insurance in emerging markets. In countries like India, Southeast Asia, and parts of Africa, there remains a vast untapped market for life insurance products, including term insurance. These regions are seeing an increase in disposable income and an evolving middle class, creating a burgeoning demand for financial security products. Furthermore, the growing trend of offering bundled products—such as term insurance combined with health insurance or other savings products—offers new revenue streams for companies.
- The competitive landscape of the term insurance market includes major global players such as Prudential, Allianz, MetLife, and AIG. These companies have a strong presence in both developed and emerging markets. Local insurers, such as ICICI Prudential Life in India, AIA in Southeast Asia, and Zurich in Latin America, also play a significant role in catering to regional needs. These companies focus on offering competitive pricing, superior customer service, and flexible policy options to attract new customers. They also invest heavily in technology to streamline their operations and enhance customer experience.
- Germany holds the largest insurance market in Europe and is one of the top markets globally for both life and non-life insurance products, including term insurance. The country has a highly developed and competitive insurance sector, characterized by a strong regulatory environment, advanced technology integration, and widespread insurance penetration. Germany's life insurance market, including term insurance, is one of the most robust in Europe, with consumers showing a preference for long-term financial security products. The demand for term insurance in Germany is driven by factors such as aging populations, a well-established social security system, and a cultural emphasis on financial planning. Major insurers in Germany, such as Allianz, Munich Re, and ERGO, play a significant role in both the domestic and international markets.
Term Insurance Market Trends
Insurance Agents Account For Major Share
- Insurance agents play a critical role in the term insurance market, accounting for a significant share of policy sales globally. They serve as the primary intermediaries between insurance companies and consumers, offering personalized guidance and expertise. Their deep understanding of insurance products and the needs of their clients enables them to recommend the most suitable term insurance policies. This personalized service builds trust, which is a crucial factor in a sector where financial security and long-term commitments are involved.
- One key advantage of insurance agents is their ability to establish face-to-face relationships with clients, which fosters a sense of trust and reliability. For many customers, especially in regions with lower insurance penetration, dealing with an agent is often seen as more comfortable and secure than purchasing policies directly online. Agents can explain the nuances of various term insurance products, including the terms, benefits, and exclusions, ensuring that clients make well-informed decisions.
- Additionally, insurance agents help consumers navigate the complex and sometimes overwhelming insurance landscape. They are adept at identifying customer needs based on life stage, financial goals, and risk factors, tailoring policies to suit those specific circumstances. Their role is particularly valuable in markets where term insurance products come with various riders and customization options. By offering this expertise, agents ensure that customers are not just buying an insurance product but securing a comprehensive solution to their financial protection needs.
- While digital platforms are gradually gaining traction, insurance agents continue to dominate in regions where personal relationships and local expertise are highly valued. This trend is especially prominent in emerging markets, where traditional buying habits and cultural preferences still play a substantial role. As a result, insurance agents remain a cornerstone of the term insurance market, leveraging their local knowledge, trust-building capabilities, and personalized services to drive significant market share.
- According to The Life Insurance Association of Japan (LIAJ), health insurance was the leading type of individual insurance in Japan for the fiscal year 2023, with approximately 44.9 million policies in force. This growth in individual insurance policies reflects a broader upward trend, which also benefits the term insurance market. As more individuals seek affordable and flexible coverage options, the demand for term insurance, offering straightforward protection at competitive premiums, continues to rise alongside other types of life insurance.
Understand The Key Trends Shaping This Market
Download PDF
Europe Accounts For Major Market Share
- Europe, particularly Germany, holds a dominant position in the global term insurance market due to its well-established and highly competitive insurance industry. Germany’s advanced regulatory framework, coupled with its robust economic stability, makes it the leading player in the European insurance market. The demand for term insurance is consistently strong, driven by both individual consumers seeking financial protection and businesses offering insurance products as employee benefits. In Europe, term insurance is widely considered an essential financial tool, with policies catering to a broad spectrum of customer needs and risk profiles.
- The dominance of Europe in the term insurance market is also supported by the presence of several major global insurers headquartered in the region. Companies like Allianz, Munich Re, and Zurich provide extensive term life insurance options, attracting customers both locally and internationally. These large insurers have capitalized on Europe's stable financial environment, allowing them to innovate and offer flexible products tailored to diverse customer requirements. Additionally, Europe's insurance market benefits from a high level of consumer awareness and financial literacy, which further drives the demand for term insurance.
- In addition to Germany, other European countries such as the United Kingdom, France, and the Netherlands also contribute to Europe’s strong foothold in the term insurance market. The UK, in particular, is a key player, with a significant portion of its life insurance sector devoted to term insurance products. Regulatory measures in these countries encourage transparency and consumer protection, ensuring that term insurance remains a reliable and secure product for individuals seeking to safeguard their financial future. The insurance culture in these nations, combined with advanced infrastructure and customer-centric service models, enhances Europe's market dominance.
- Moreover, the increasing digitalization of the insurance sector in Europe has played a pivotal role in strengthening its leadership in the term insurance market. The widespread adoption of online platforms and mobile applications has made it easier for consumers to purchase and manage term insurance policies, further boosting market growth. European insurers have been quick to embrace technology, offering streamlined processes for policy sales, renewals, and claims, which has appealed to a tech-savvy generation of customers. As a result, Europe remains a dominant force in the global term insurance market, setting trends and standards that are often emulated by other regions.
Get Analysis on Important Geographic Markets
Download PDF
Term Insurance Industry Overview
The term insurance market is fragmented, with major players such as Allianz SE, Munich Reinsurance Company (Munich Re), AIG Life Insurance (American International Group, Inc.), Prudential Financial, Inc., and MetLife, Inc. dominating the competitive landscape. These companies, along with regional insurers, compete on factors like pricing, product flexibility, and customer service to capture market share. Innovation in digital platforms and the ability to offer personalized policies are becoming crucial differentiators.
Additionally, insurers are investing in technology to enhance customer experience, streamline operations, and offer more convenient policy management options. Strategic partnerships, mergers, and acquisitions are also common strategies used by companies to strengthen their market position. As customer preferences evolve, these players are increasingly focusing on providing value-added services such as wellness programs and bundled insurance solutions to stay ahead of the competition.
Term Insurance Market Leaders
-
Allianz SE
-
Munich Reinsurance Company (Munich Re)
-
AIG Life Insurance
-
Prudential Financial, Inc.
-
MetLife, Inc.
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
Term Insurance Market News
- October 2024: In a bid to enhance financial security, the Life Insurance Corporation of India (LIC) has rolled out a new single-premium group micro-term insurance plan. This innovative offering is a non-participating, non-linked, group, pure risk micro insurance product. Tailored for financial institutions, the plan aims to deliver straightforward, adaptable, and cost-effective life insurance solutions. It's particularly beneficial for micro finance institutions, cooperatives, self-help groups (SHGs), and non-governmental organizations (NGOs), enabling them to safeguard their members and loanees.
- September 2024: Acko Tech, an insurtech unicorn, has launched its Acko Flexi Term Life Insurance Plan, enabling policyholders to modify their coverage amounts in response to evolving financial responsibilities.
Term Insurance Industry Segmentation
The term insurance market offers affordable life coverage for a specified period, catering to individuals seeking financial protection. It is expanding rapidly, driven by rising awareness and demand for cost-effective solutions. Growth is particularly strong in emerging markets, where disposable incomes are rising. The market's scope includes diverse customer segments, flexible policy options, and digital distribution channels.
The Term Insurance Market is Segmented by coverage duration (short-term (1 to 5 years), medium-term (6 to 10 years), long-term (11+ years)), age group (18-30 years, 31-45 years, 46-60 years, 60+ years), distribution channel (direct sales, insurance agents, brokers), end user (individual, group), premium payment mode (single premium, regular premium, limited premium), and geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Coverage Duration | Short-Term (1 to 5 years) |
| Medium-Term (6 to 10 years) | |
| Long-Term (11+ years) | |
| By Age Group | 18-30 Years |
| 31-45 Years | |
| 46-60 Years | |
| 60+ Years | |
| By Distribution Channel | Direct Sales |
| Insurance Agents | |
| Brokers | |
| By End User | Individual |
| Group | |
| By Premium Payment Mode | Single Premium |
| Regular Premium | |
| Limited Premium | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Need A Different Region or Segment?
Customize Now
Term Insurance Market Research FAQs
How big is the Term Insurance Market?
The Term Insurance Market size is expected to reach USD 1.40 trillion in 2025 and grow at a CAGR of 8.92% to reach USD 2.15 trillion by 2030.
What is the current Term Insurance Market size?
In 2025, the Term Insurance Market size is expected to reach USD 1.40 trillion.
Who are the key players in Term Insurance Market?
Allianz SE, Munich Reinsurance Company (Munich Re), AIG Life Insurance, Prudential Financial, Inc. and MetLife, Inc. are the major companies operating in the Term Insurance Market.
Which is the fastest growing region in Term Insurance Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Term Insurance Market?
In 2025, the Europe accounts for the largest market share in Term Insurance Market.
What years does this Term Insurance Market cover, and what was the market size in 2024?
In 2024, the Term Insurance Market size was estimated at USD 1.28 trillion. The report covers the Term Insurance Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Term Insurance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Term Insurance Industry Report
Statistics for the 2025 Term Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Term Insurance analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
