Overview of the U.S. Life Insurance Market
The life insurance industry in the United States is a significant sector within the global economy. The market is competitive and generates trillions of dollars in revenue annually. This article will examine the number of life insurance companies operating in the U.S. and discuss key industry trends.
Number of Life Insurance Companies
The number of life insurance companies in the United States has fluctuated over time. After an initial surge in the mid-20th century, the number of companies experienced a decline. In 2023, there were 719 life insurance companies operating in the U.S., a slight decrease from 727 the previous year. The all-time high was in 1990, with significantly over 2,100 companies.
Revenue and Market Dynamics
The U.S. life/annuity insurance industry generated over one trillion U.S. dollars in revenue in 2022, demonstrating the sector’s economic importance. Life insurance provides financial protection to beneficiaries in the event of the insured person’s death. Annuities involve a contract where an insured individual pays an insurer for future payments.
Major Players in the Market
The U.S. insurance market is competitive, and various insurers lead the industry. For example, in 2021, Northwestern Mutual held the largest market share based on overall company size. However, Prudential Financial led that year’s market in total assets held.
