PUBLISHER: Grand View Research | PRODUCT CODE: 1529614
PUBLISHER: Grand View Research | PRODUCT CODE: 1529614
The global term insurance market size is anticipated to reach USD 1,897.40 billion by 2030 and is anticipated to expand at a CAGR of 8.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growing digital transformation in the insurance sector is expected to create growth opportunities for the market. Various factors, such as the growing disposable income of the population, the emergence of InsurTech, and the growing middle-class population in developing economies such as China, India, and Brazil, are propelling the demand for the term insurance.
The growing digitization of the insurance industry is driving prominent term insurance providers to launch digital solutions. For instance, in November 2023, Life Insurance Corporation of India launched a new Tech-Term Insurance Plan. The new Tech-Term insurance plan is a non-linked, pure protection, online, and without-profit term insurance plan. The plan is available through online processes only, and no intermediaries are involved. Such plans are driving the adoption of term insurance among consumers due to its easy access and hassle-free process, thus benefiting the market's growth.
Term Insurance providers are adopting cutting-edge advanced technology to automate the insurance process, reduce operating costs, and improve efficiency. This technology includes machine learning for the automation of risky and complex processes and artificial intelligence such as blockchain, robotic process automation, and robot advisors for the automation of insurance. Such technologies are expected to improve the risk-return trade-off for both insurers and policyholders, thus harnessing the market's growth over the forecast period.
However, the term insurance sector encounters notable challenges, such as low public awareness about the benefits, evolving regulatory requirements, complex underwriting processes, and the need for affordable yet comprehensive coverage. Market leaders are actively working to address these challenges, simplifying policies, improving customer education, and adapting to changing regulations to stimulate market growth.