BURIAL INSURANCE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Burial Insurance Market Size and Trends

The global burial insurance market is estimated to be valued at USD 291.10 Bn in 2024 and is expected to reach USD 425.20 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

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Increasing preference for traditional burial formalities and need to reduce the cost burden on family members are expected to drive the demand for burial insurance. In addition, rising promotional and awareness campaigns by insurance companies regarding the benefits of having a pre-paid burial plan have also contributed to the market growth. However, aspects such as preference for inexpensive cremation services and availability of other post-death expense coverage options are expected to hinder the market growth. 

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Insights By Insurance Coverage - Affordability Drives Demand for Level Death Benefit Coverage

In terms of insurance coverage, level death benefit is expected to contribute the highest market share of 42.1% in 2024 owing to its affordability and basic life protection. The level death benefit plan offers a fixed payout amount regardless of how long the policy has been in effect. This simple structure keeps the premiums low and makes burial insurance accessible to more individuals. level death benefit offers stable premiums, making it ideal for budget-conscious customers to plan expenses and ensure end-of-life coverage.

Insights By Premium Payment Type - Monthly Payment Frequency Drives Convenience

In terms of premium payment type, the monthly segment is expected to contribute the highest market share of 40.1% in 2024. Paying monthly premiums provides maximum flexibility and convenience for customers. It allows them to spread out costs into low, manageable instalments incorporated easily into their normal budget and cash flow. Some policyholders may have sporadic income or struggle to come up with quarterly or annual lump sums. The monthly option removes that risk of falling behind on payments due to temporary financial setbacks.

Insights By Customer Age Group - Preference for Independence Drives Over 50 Age Group

In terms of customer age group, the over 50 segment is expected to contribute the largest market share of 35.1% in 2024. This is because this demographic values independence and privacy in arranging their final affairs. They seek to securely handle later life planning matters without burdening family members. Compared to other groups, those over 50 tend to have clearer ideas about their end-of-life wishes and prefer organizing the logistics independently.

Regional Insights

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Regional Analysis:

Dominating Region: North America

North America dominates the burial insurance industry with an estimated 36.2% share in 2024. This can be attributed to the strong presence of insurance providers and well-established industry practices. Countries such as the U.S. have policies that support the growth of private insurers. Furthermore, social norms around caring for deceased family members financially contribute to the popularity of burial insurance plans in the region.

Fastest-Growing Region: Asia Pacific

The Asia Pacific region exhibits the fastest growth in the burial insurance industry, led by China, India, and other emerging markets. Rising incomes and awareness about financial planning are driving more consumers to consider life stages including death and subsequent costs. Governments are also encouraging inclusive insurance policies to help citizens of all income levels. Major global insurers like Sun Life Financial Inc. have expanded into these markets to tap growing demand.

Burial Insurance Market Outlook for Key Countries

U.S.’ Market Leads with Innovation and Scale

The U.S. dominates the North America burial insurance industry due to its large, diverse consumer base, advanced technology integration, strong regulatory framework, and competitive environment. In September 2024, Transamerica, a life insurance company in the U.S., launched FE Express, a digital platform for final expense insurance, offering lifetime coverage up to US$ 50,000 with guaranteed level premiums. Applications take as little as 10 minutes, featuring online management and optional funeral concierge services.

Strengthening Consumer Trust in Insurance in the U.K.

The U.K., as a global financial hub, holds a significant role in burial insurance industry, driven by its robust regulatory framework and consumer-centric approach. The Financial Conduct Authority (FCA) in the U.K. has urged life insurers to improve bereavement claim handling times and better measure customer experience. While some firms provide good support, the average claim processing times vary widely, from 20 to 122 days depending on policy type, with inconsistent data tracking.

Pioneering Insurance Growth in India

India continues to lead growth in South Asia with the insurance sector transforming rapidly. Regulations have loosened to allow for new entrants and product types, benefiting both providers and consumers. According to a report by Insurance Sector in India, in October 2024, India is witnessing rapid transformation in its insurance sector, attributed to relaxed regulations allowing new entrants and diverse product types. This has positioned India as a leader in South Asia's insurance growth.

Japan is Embracing Technology to Overcome Market Hurdles

Japan’s dominance in the burial insurance industry is attributed to its advanced economy, high insurance penetration, and innovative adaptation to challenges. In August 2023, the Japan Life Insurance Association noted that while the market faces challenges such as a declining birth rate and frequent natural disasters, insurance companies are increasingly adopting technology solutions. Approximately 60% of insurers reported implementing digital tools to enhance their service offerings for existing policyholders

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Burial Insurance Market Players

• Established Players: Leading insurance companies in burial insurance industry are heavily investing in R&D to innovate and offer high-performance products. For instance, in March 2024, Allianz SE announced a USD500 million investment in developing digital platforms to enhance customer experience and streamline policy management.
• Mid-Level Players: Mid-sized insurers in burial insurance industry focus on delivering quality, budget-friendly products targeting price-sensitive consumers. In April 2024, Aviva PLC introduced a simplified burial insurance policy in the UK, reducing administrative costs and offering lower premiums to attract a wider customer base.
• Small-Scale Players: Smaller insurers in burial insurance industry often target niche markets with unique features. In May 2024, Sentinel Security Life Insurance Company launched a burial insurance product tailored for veterans, offering specialized benefits and coverage options. Embracing cutting-edge technologies helps small players remain competitive. In August 2024, Colonial Penn Life Insurance Company implemented blockchain technology to enhance transparency and security in policy management.

Emerging Startups in the Global Burial Insurance Market

Innovative Technologies: Startups are developing advanced technologies to revolutionize the insurance industry. In March 2024, InsurTech startup PolicyPal introduced an AI-driven platform that assesses customer needs and recommends personalized burial insurance plans. These technologies enhance customer engagement and streamline policy management, potentially reshaping burial insurance market dynamics by making insurance more accessible and tailored.

Sustainable Solutions: Some startups focus on sustainability by offering eco-friendly products. In April 2024, GreenBurial Insurance launched policies that cover environmentally friendly burial options, such as biodegradable caskets and natural burial sites. These initiatives contribute to reducing the burial insurance market environmental footprint by promoting sustainable end-of-life practices.

Burial Insurance Industry News

• In April 2024, New York Life Insurance, a life insurance company, acquired a minority stake in Fairview Capital, a prominent private equity and venture capital firm. This strategic investment aims to enhance Fairview's growth prospects, including a planned US$ 1 billion initiative to address the wealth gap in underserved and undercapitalized communities.
• On February 28, 2022, Fidelity Life, a term life insurance company, acquired Westpac Life, a flexible saving account for USD 233.4 million. renaming it Fidelity Insurance. Under a 15-year deal, Westpac NZ will distribute Fidelity Insurance products to its retail clients.
• In February 2020, Canadian Premier Life Insurance Company agreed to acquire the Canadian life insurance business of U.S.-based Western & Southern Financial Group, marketed under the Gerber Life brand. This acquisition aligns with Canadian Premier's strategy to expand its operations into additional insurance sectors.
• In July 2020, Nassau Financial Group, L.P. financial services company acquired Foresters Life Insurance and Annuity Company, fulfilling its commitment to maintain the independent Foresters branch and utilize mission-driven organizations to drive the growth of its U.S. insurance business.

Key Takeaways from Analyst

• Rising incomes and increasing awareness about the need for burial plans are major drivers fueling demand. Developing nations with large populations are expected to boost the market size considerably. North America currently dominates the market due to established cultures of pre-paying for funeral costs.
• However, Asia Pacific is anticipated to emerge as the fastest growing regional market. Rapid urbanization and changing mindsets about traditional customs are prompting consumers to opt for burial insurance. Low-cost premiums and flexible coverage options catering to diverse budget profiles make the offerings very appealing. At the same time, socio-economic conditions in parts of Latin America and Middle East & Africa will aid expansion in these regions.
• On the other hand, lack of appropriate regulations and standardization around burial insurance plans pose a restraint. Premature claims due to unforeseen circumstances also put insurers at risk. Stiff competition between existing players can affect profit margins. Persistent inflationary pressures challenge efforts to offer affordable premiums over the long-run as well.

Market Report Scope

Market Dynamics

Market Driver - Growing demand for financial security among aging populations

As populations age, ensuring funds for living expenses, healthcare, and final rites is crucial. Adding burial insurance offers seniors peace of mind, ensuring end-of-life rituals are handled without burdening grieving dependents or depleting inherited assets. According to a report by the National Council on Aging (NCOA) in September 2024, 80% of Americans aged 60+ struggle with financial insecurity, with 27 million households unable to afford basic needs. Long-term care costs are high, but Medicare does not cover them, leaving families to pay. The NCOA urges action to support older adults as more people age into retirement.

Market Challenge - Limited understanding of burial insurance products

One of the key challenges faced by the global burial insurance market is the limited understanding of burial insurance products among potential customers. Burial insurance is still a relatively niche product compared to more mainstream insurance plans such as life or health insurance. Many people are simply unaware of how burial insurance works or the benefits it provides. Educating customers about the product features, payout structure, enrollment process, etc. is important to boost demand. However, this remains a challenge due to the complexity of products offered by insurers.

Market Opportunities - Expansion of online insurance platforms

One major opportunity for the global burial insurance market is the expansion of online insurance platforms. The insurance industry has been making a strong push towards online and digital transformation over the past few years. Innovative models like InsurTech are disrupting traditional methods of purchasing insurance. The burial insurance market is well positioned to ride this digital wave. Online platforms enhance the accessibility of products by making information readily available online and allowing customers to purchase policies via websites and mobile apps from the comfort of their homes.

Key Stakeholders of Market

What does Growth in the Burial Insurance Market mean for Different Stakeholders?

The burial insurance market has multiple players with varied designations and offers multiple opportunities based on their scope of operations.

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Market Segmentation

•  Insurance Coverage Insights (Revenue, USD Bn, 2019 - 2031)
• • Level Death Benefit
  • Guaranteed Acceptance
  • Modified or Graded Death Benefit
•  Premium Payment Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Monthly
  • Quarterly
  • Annually
•  Customer Age Group Insights (Revenue, USD Bn, 2019 - 2031)
• • Over 50
  • Over 60
  • Over 70
  • Over 80
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
• • Direct Sales
  • Insurance Brokers
  • Online Platforms
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Gerber Life
  • Foresters Financial
  • Allianz Life
  • AIG
  • American National
  • Assurity Life Insurance Company
  • Transamerica
  • Americo Financial Life and Annuity Insurance Company
  • Baltimore Life
  • AAA Life Insurance Company
  • State Farm
  • Sagicor Life Insurance Company
  • Mutual of Omaha
  • United Home Life Insurance Company
  • New York Life Insurance Company