- Immediate annuities
- Deferred annuities
- Fixed annuities
- Variable annuities
Annuity Market size was valued at USD 5,328.1 billion in 2022 and is poised to grow at a significant CAGR of 3.3% over 2023–2029. Products that are the simplest to comprehend and buy will be the most successful because service is increasingly a significant differentiation among providers, particularly those with direct internet offerings. The insurance sector's established business practices will be upended by fresh and continuing social developments, giving consumers more clout. Social networks' quick uptake and rapid evolution will continue to provide consumers and businesses the tools they need to speak more openly and tap into the purchasing power of online communities. Customers are placing higher demands on companies, especially insurance agents/advisers and carriers, for simplicity, transparency, and speed in their business dealings. This shift in customer expectations is fueled by the unrelenting advance of the internet and mobile technology. Moreover, benefiting from information-driven online intermediaries, social networks with significant purchasing power create new group channels. For life and annuities insurance, robotics is becoming more prevalent. RPA initiatives are assisting in automating legacy processes, particularly for high-volume and straightforward jobs. RPA is helping to lighten the load on IT by replacing some of the legacy resources lost with a significant amount of internal process knowledge. Externally, insurers are discovering that automating goods with robots may not be the best approach for luring younger and more tech-savvy clients. Although technologies like Robo-advisory may answer fundamental questions, many customers still seek human counsel. A few businesses are experimenting with analytics and underwriting, but most technology platforms concentrate on the front end.
The Recent Annuity Market Developments:
In August 2022, Crestline Investors, Inc. entered into the direct annuity insurance market with the acquisition of a life insurance company and now operates as CL Life and Annuity Insurance Company
Fastest Growing Market
Initiatives are being taken at the industry level to shift the conversation away from retirement wealth building and toward retirement income. The issues that an aging population face have become more widely acknowledged in recent years, and legislative actions have also aided in this momentum's growth. Annuities, increasingly viewed as a crucial tool to give the guaranteed retirement income people need to provide the peace of mind and security to live their ideal retirement, will come under greater scrutiny due to the evolving approach to retirement planning. As more people globally retire from the recently established private pension system and need stable incomes, the market for annuities will expand in the coming years. The creation of annuity products can lengthen the duration of insurers' liabilities, enhancing their capacity to invest in longer-term assets and more actively support the growth of the capital market. The market was hindered by lower Annuity plan adoption and longevity risks.
The annuity market growing at a CAGR of 3.3% during 2022-28
Beneva, Assumption Life, Ping An, AIA, China Life, Nippon Life, Generali
North America is the fastest-growing region for annuity market