The Global Life Insurance Carriers market and Health insurance carriers industry protects people from the immediate and long-term costs arising from illness, injury, death and longevity. Industry firms primarily offer life and health insurance products, and are often referred to as life and health (L&H) insurers. Insurers provide this protection at a fraction of the potential loss by pooling risk. Annuities provide policyholders with protection against their longevity by guaranteeing an income stream until death.
The role of L&H insurers is growing as populations age and life expectancies advance, propelling industry demand. Population aging is boosting public healthcare expenditure. In response, governments are further privatizing healthcare by strengthening incentives for purchasing health insurance. Additionally, demand for insurance is growing in developing economies, which have financial markets that are rapidly becoming more sophisticated. As the wealth of these regions grows, individuals will be more interested in insuring their wealth and income against death, illness or accident.
L&H insurers generate revenue through insurance underwriting and investing. Insurance underwriting is the process of assuming risk in return for a premium. Insurers then invest premiums in stocks, bonds and property to generate income streams and capital gains. This exposure to financial markets means revenue and profitability exhibit significant volatility. The financial market collapse caused industry revenue to plummet in 2008. This was followed by a further decline in 2010, as the rebound many expected did not eventuate. However, operating conditions have since improved markedly, allowing the industry to return to growth in 2011 and 2012. As a result, industry revenue is expected to increase at an annualized rate of 3.3% to $4.0 trillion, with growth of 3.3% in 2013.
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