Insurance behemoth Life Insurance Corporation of India (LIC) is the fourth largest insurer in the world, according to a ranking based on life and accident & health reserves of companies in 2022 by S&P Global Market Intelligence.
The state-owned insurer is ranked after Allianz SE, China Life Insurance Company, and Nippon Life Insurance Company.
According to the report, LIC’s reserves stood at $503.7 billion. Germany’s Allianz SE ($750.20 billion), China Life Insurance Company ($616.90 billion) and Nippon Life Insurance Company ($536.80 billion) are the top three insurance companies in the world.
The reserves of LIC and Nippon Life Insurance Company reflect the reserves of the financial year 2023 (April 2022 to March 2023).
The S&P list of the top 50 global life insurance companies was dominated by European firms, taking 21 spots.
On an individual country basis, the US has the highest number of life insurers on the list, with eight companies headquartered in the region, followed by the UK with seven companies.
Out of the top 50 companies, Asian firms followed their European counterparts with 17 of them featuring on the list.
China and Japan share the top spots in Asia with five companies headquartered in the two countries.
The top 50 companies were ranked on their life and accident & health reserves, one of the key financial strengths of a life insurer.
North America had 12 spots on the list with eight companies based in the US, two in Canada and two in Bermuda.
According to the experts, a key area of concern for the life insurance industry is the difficulty of adapting to large-scale transfer of wealth from one generation to the next.
“There’s not a single area in the world that isn’t going to be experiencing that wealth transfer.
"The life insurance industry is not yet ready to address this challenge as it does not have the right products and technology,” said Samantha Chow, global leader for the life, annuities and benefits sector at Capgemini.
There has been a shift in perception towards insurance post the Covid-19 pandemic. It, however, has started to flatten.
“In addition to aging populations and lower birth rates, there’s been a shift in how people think about life insurance,” said Brian Galbraith, principal at Deloitte with its insurance practice.
The experts also emphasise the importance of technology in the advancement of the insurance business.
“The players who are really being successful are investing heavily in their digital capabilities but also in their agents,” said Rob Sims, managing director and partner with Boston Consulting Group's insurance practice.
