For insurers who realize the potential, the women’s insurance market could create an impact far beyond the bottom line.
The annual women’s retail life insurance market is estimated to be $448 billion globally—approximately 17 percent of the total retail and commercial life insurance market value of $2.6 trillion. By 2030, the annual women’s retail life insurance market is expected to reach between $825 billion and $963 billion, growing at an estimated 4.6 percent compounded annual growth rate (CAGR), which is effectively double the current market value.
Life insurance policies that include savings and retirement products are especially important for women due to their longer life expectancy. Recent research of 10 focus emerging markets found that women outlive men by an average of five years, with higher age gaps in Brazil, Colombia, Indonesia, Thailand and Turkey. However, the statutory retirement age for women in many countries is lower than men’s and does not reflect this dramatic difference in life expectancy.
Because women may not work for as many years as men and are more likely to have worked part-time due to care responsibilities, they do not contribute as much to their pension over their lifetime. This widening gap between retirement and life expectancy means it will be more important than ever to make sure women have adequate savings and pensions.
Findings from the International Labour Organization (ILO) show that women are also more likely than men to be concerned about being a burden to their families (due to outstanding debts, for example).They also want peace of mind in controlling who will receive their financial benefits after they pass away. Market interviews in Mexico show that more women will designate their children, not their spouses, as beneficiaries.
This type of post-mortem financial security is what protection-oriented life insurance is designed to provide. And yet, until now, the potential of the women’s life insurance market has been recognized in only a few countries.
To learn more, register to download the SheforShield: Insure Women to Better Protect All report.