The US Annuity Market: Insights and Forecast with Potential Impact of COVID-19 (2022-2026)

DELHI, India - Oct. 18, 2023 - PRLog -- An annuity is a type of insurance contract that is issued and distributed by financial institutions with the goal of paying out invested funds in the future in the form of a fixed income stream. Annuities are purchased or invested in by investors who receive monthly or lump-sum payments.

Annuities are suitable for those seeking consistent, guaranteed retirement income. Because invested funds is illiquid and susceptible to withdrawal penalties, this financial instrument is not suggested for younger people or those who require liquidity. Investors concerned about rising market volatility and rising prices pushed overall US annuity purchases to their highest level since 2008. Insurers, on the other hand, are providing clients higher payments and guarantees on all types of annuities in the face of rising interest rates, which has resulted in an increase in earnings for insurance firms in recent years.  The US annuity market value is expected to reach US$259.97 billion in 2023, growing at a CAGR of 4.74% during the forecast period.

Top Impacting Factors:

Growth Drivers

• Growing Older Population
• Capitalizing on Stock Market Growth    
• Rising Inflation
• Annuities are Protected and Regulated      

Challenges

• Annuities' Complexity and Liquidity Restrictions  
• Low Interest Rates and Market Volatility      

Trends

• Growing Demand for Registered Indexed Linked Annuities (RILAs)
• Increasing Role of Technology          

Analysis of Key Players:

The US annuity market is concentrated with few players holding the significant share in the market. The annuity market would become more concentrated over time as the importance of 3rd party distribution hinders sub-scale firms. Over the past decade, market share in the variable annuity business has shifted from US public companies to mutual insurers and foreign-owned firms. Meanwhile, in the fixed annuity market, index annuity firms and mutual insurers have gained share. The key players in the US annuity market are:

• American International Group, Inc.
• Lincoln National Corporation
• Athene Holding Ltd.
• MassMutual
• American National Group, Inc.
• Jackson Financial Inc. (Jackson National Life Insurance Company)
• KKR & Co. Inc. (Global Atlantic Financial Group Ltd.)
• Pacific LifeCorp
• Midland National Life Insurance Company
• Nationwide Mutual Insurance Company
• American Equity Investment Life Holding Company (American Equity Investment Life Insurance Company)
• TIAA

For more Information:

https://www.konceptanalytics.com/report/financial-services/the-us-annuity-market-by-type-distribution-channel-contract-type-investment-category-asset-under-management-annuity-premium-insights-and-forecast-with-potential-impact-of-covid-19-2022-2026

Koncept Analytics

Vikas Gupta

(Business Development Manager)

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Vaishali, Ghaziabad

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Tele: +91-120-4130959

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Mail ID – vikas@konceptanalytics.com