An open road for life insurance

By Vivek Agrawal, Guillaume de Gantès, and Peter Walker

Purchases of life insurance surge at a relatively high income threshold.


The inflection point for market takeoff in life insurance is relatively high: sales rarely surge until GDP per capita reaches about $30,000. Higher income levels, particularly when reinforced by cultural preferences for locking in financial security, correlate strongly with insurance-market penetration. As emerging markets get richer over the next decade, they will fuel more than 80 percent of life-insurance companies’ global growth.

For more on our research, see “Life journey: Winning in the life-insurance market,” March 2014.

About the author(s)

Vivek Agrawal is a director in McKinsey’s Tokyo office, Guillaume de Gantès is a principal in the Jakarta office, and Pete Walker is a director in the New York office.

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