Procurement Market Intelligence Report
Life Insurance
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Life Insurance Global Overview
Definition
Summary
Life insurance is a type of policy that provides a specified amount of money to a buyer's stated beneficiary in the event of their death. Buyers are also referred to as policyholders. Key buyers include consumers and businesses, which use third-party vendors to offer life insurance policies to their workers.
This Report Includes:
- Individual Life Insurance
- Group Life Insurance
Not in this Report:
- Annuities
- Credit Life Insurance
Global Life Insurance Procurement Trends
Discover the top international trends affecting procurement in the global Life Insurance market.
Warning Trends
California Wildfires Disrupt State Insurance Markets
- The recent wildfires in the Los Angeles area have been estimated to be the costliest wildfire disaster in the United States, amounting to around $20.0 billion in damages, according to JPMorgan. The large losses are anticipated to significantly impact property and casualty, business interruption, and commercial liability insurers operating in the area.
- The State of California has a lender-of-last-resort program called the FAIR Plan for property owners who cannot secure private insurance, and since 2023, the number of FAIR Plan policies has increased by 40.0% across all California ZIP codes. In the event the FAIR Plan fails to pay out claims, by law, the state can collect money from private insurers operating in the state, which, according to Politico, would raise rates for all private policies across the State.
- Several large insurance companies have been reducing exposure in California by limiting new policies or not renewing policies; for example, State Farm dropped almost 70.0% of policies in the Pacific Palisades in 2023 to reduce risk. Allstate, American National, AmGUARD, Chubb, Farmers Insurance, Nationwide, the Hartford, Tokio Marine Insurance, and Travelers have all scaled back or exited the California market in recent years.
- The California Insurance Commission has passed a temporary moratorium that suspends all policy non-renewals and cancellations affected by the recent wildfires for one year. However, the moratorium only applies to residential properties, so businesses and commercial properties will likely face higher cancellations and non-renewals.
- Overall, insurance premiums are anticipated to rise in California as insurers are forced to contend with large wildfire risk and costly state policies. In addition, other disaster-prone areas like Florida are experiencing similar trends with insurers (specifically Farmers, Progressive, and AAA) exiting or reducing their exposure, and premiums rising as insurers begin to price in natural disaster risk.
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Global Life Insurance Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1China | 1,095 |
| #2United States | 780 |
| #3Europe | 700 |
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Geography Drilldown - US & Canada
Average Cost of Life Insurance
United States
2025 Market Pricing$0.05 to $X.XX
per $1,000 in coverage per year per employeeCanada
Average Price
Prices in the Life Insurance market range from $0.05 to $X.XX, depending on Risk, Amount of Coverage, Length of Policy and Type of Policy. For example, lower prices are associated with Healthy, non-smoking employee, Employees aged 25 to 50 ($0.15 to $0.93 per $1,000 in coverage per year per employee) and Female employee ($0.15 to $4.08 per $1,000 in coverage per year per employee), whereas higher prices are associated with Cigarette smoking employee, Employees aged 50 to 65 ($0.56 to $3.91 per $1,000 in coverage per year per employee) and Male employee ($0.18 to $6.01 per $1,000 in coverage per year per employee).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Life Insurance Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Life Insurance market, prices in the US have grown 2.0% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Canada is NaN0.5%.
United States (2022-2025)
2.0%
Compound Annual Growth RateCanada (2016-2019)
0.5%
Compound Annual Growth RateWondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Life Insurance
Total cost of ownership is Low in the Life Insurance market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Pre-evaluation
Billed During
Training
Compliance
Unforeseen
Emergencies
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -1.2 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Price Driver Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Buyer power forecasts: your glimpse into the future
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- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Portfolio Management Firms
- Reinsurance Providers
- Third-Party Administrators & Insurance Claims Adjusters
2nd
Tier Suppliers
- Securities Brokerage Providers
- Insurance Brokerage Firms
Biggest Life Insurance Suppliers in the US by Revenue
The largest Life Insurance vendors by revenue in the US are Prudential Financial, Inc., AXA AS and Lincoln National Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Metlife, Inc. | Global | New York | >10,000 | 5-10 | ||||
| Lincoln National Corporation | National | RADNOR | >10,000 | 5-10 | ||||
| Prudential Financial, Inc. | International | 5-10 | ||||||
| Northwestern Mutual Life Insurance Co | National | Milwaukee, WI | 1,001-10,000 | 5-10 | ||||
| New York Life Insurance Co | Global | New York, NY | >10,000 | 5-10 | ||||
| American International Group, Inc. | Global | NEW YORK, NY | >10,000 | < 5 | ||||
| Aflac Inc. | Global | COLUMBUS, GA | 1,001-10,000 | < 5 | ||||
| Manulife Financial Corp | Global | Toronto, CA | >10,001 | < 5 | ||||
| AXA AS | NEW YORK, NY | 1,001-10,000 | < 5 | |||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Life Insurance market is 24.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is stagnating, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The top four operators account for over 30.0% of total market revenue, signaling a moderate level of market share concentration. Moderate market share concentration slightly limits the ability of buyers to leverage competing firms in negotiations.
The diversity of key buyers, including businesses and consumers, helps to mitigate vendor risk in the life insurance market. However, financial risk and a moderate availability of substitutes result in a moderate level of vendor risk overall.
Moderate supply chain risk in the life insurance market stems directly from the credit risk posed by upstream reinsurance carriers and portfolio managers combined with the increased financial risk from fluctuating interest rates.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
New York Life Insurance Co
New York Life Insurance Co is a private company operating globally in the finance and insurance sector. The company's offerings include life insurance. Founded in 1845, the company is currently headquartered in New York, New York, United States of America with an estimated 11388 employees. Subscribe to learn more
Northwestern Mutual Life Insurance Co
Northwestern Mutual Life Insurance Co is a private company operating nationally in the finance and insurance sector. The company's offerings include life insurance and disability insurance. Founded in 1857, the company is currently headquartered in Milwaukee, Wisconsin, United States of America with an estimated... Subscribe to learn more
Prudential Financial, Inc.
Prudential Financial, Inc. is a private company operating internationally in the finance and insurance sector. The company's offerings include investment management services, commercial mortgage financing, life insurance and disability insurance. Founded in 1900,. Subscribe to learn more
Lincoln National Corporation
Lincoln National Corporation is a holding company that operates multiple insurance and retirement businesses. It organizes its business into four segments: the Annuities segment, which offers variable, fixed, and indexed variable annuities; the Life Insurance segment, which provides term insurance, single... Subscribe to learn more
Metlife, Inc.
MetLife, Inc. is a global financial services company providing insurance, annuities, employee benefits, and asset management. It sells its products to corporations, other institutions, their respective employees, and individuals through a direct sales force and intermediaries. Its primary markets include Subscribe to learn more
Guardian Life Insurance Co Of America
Guardian Life Insurance Co Of America is a private company operating internationally in the finance and insurance sector. The company's offerings include life insurance, vision insurance and group dental insurance. Founded in 1860, the company is currently headquartered in New York, New York, United States... Subscribe to learn more
Massachusetts Mutual Life Insurance Co
Massachusetts Mutual Life Insurance Co is a private company operating nationally in the finance and insurance sector. The company's offerings include equipment financing services, life insurance, disability insurance and 401(k) administration services. Founded in 1851, the company is currently headquartered... Subscribe to learn more
Nationwide Mutual Insurance Co
Nationwide Mutual Insurance Co is a private company operating nationally in the finance and insurance sector. The company's offerings include building & contents insurance, commercial auto & truck insurance, business interruption insurance, professional indemnity insurance, group travel insurance. Founded... Subscribe to learn more
State Farm Mutual Automobile Insurance Co
State Farm Mutual Automobile Insurance Co is a private company operating nationally in the finance and insurance sector. The company's offerings include commercial auto & truck insurance, professional indemnity insurance and life insurance. Founded in 1922, the company is currently headquartered in Bloomington,... Subscribe to learn more
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Procurement Management KPIs for the Life Insurance Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Cash Flow. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Customer Support and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Order Value | Size of life insurance policies Total number of life insurance policies | This market consists of a concentrated pool of large, national insurers and a moderate number of smaller players serving regional markets across the United States. Large buyers should ask a potential vendor whether they have the capacity to provide insurance to a large number of employees during the negotiating process. | |
| Cash Flow | Total cash inflows Total cash outflows | Life insurance policyholders should select market vendors with low financial risk to reduce the possibility that a contracted vendor exits the market. Policyholders face significant uncertainties, possibly including discontinuity of service, if their life insurer declares bankruptcy. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Qualifications
How many life insurance policies do you currently have in force?
What is the average size of a life insurance policy you manage?
Vendor Financial Risk
What actions do you take to mitigate your risk of bankruptcy? What factors exacerbate your risk of bankruptcy?
What is your capital ratio? How does it compare to industry standards?
Specifications
What is the maximum amount of coverage for a single individual? For a group?
What time periods do your life insurance policies cover?
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Life Insurance RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organizations, including the number of employees, location(s) and type of ownership.
Buyers should describe the type of life insurance plan they desire (i.e., term or permanent).
Statement Of Need
Buyers should give a detailed explanation of the benefits the plan should offer (i.e., amount of coverage, riders, or family coverage).
Buyers should describe which employees (e.g., full-time) are eligible for coverage.
Project Budget
Vendors should include a detailed breakdown of their premium rates.
Buyers should outline any other costs for which insurers are responsible (e.g., mailing).
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