2023 Lookback On Insurance Policy Trends

In 2023, the most purchased insurance policies were life insurance, homeowners insurance, and auto insurance. Here’s a brief overview of each:

1. Life Insurance

Life insurance remained a top choice for many Americans, driven by several key reasons:

  • Burial and Final Expenses: 82% of policyholders purchased life insurance to cover burial and final expenses.
  • Wealth Transfer: 68% aimed to transfer wealth to beneficiaries.
  • Income Replacement: 60% used it to replace lost income for dependents.
  • Supplementing Retirement Income: 66% used life insurance as a supplementary income source for retirement.

Life insurance policies offered a blend of term, whole, and universal life products, catering to different financial planning needs​​.

2. Homeowners Insurance

Homeowners insurance also saw significant uptake, influenced by:

  • Increased Natural Disasters: The rising frequency of natural disasters, such as wildfires and hurricanes, pushed many homeowners to secure their properties. This was particularly noticeable in states like California, Colorado, and Texas, where insurance rates spiked due to increased risk and rebuilding costs.
  • Inflation and Supply-Chain Issues: Higher construction costs and supply-chain disruptions led to increased premiums, making it crucial for homeowners to maintain robust insurance coverage​.

3. Auto Insurance

Auto insurance continued to be a staple, driven by:

  • Legal Requirements: Most states mandate auto insurance for vehicle owners.
  • Coverage for Accidents and Theft: The need to cover potential damages from accidents and theft kept demand high.
  • Bundling Discounts: Many consumers bundled auto insurance with other policies like homeowners or renters insurance to save on premiums.

These trends highlight the essential role of insurance in financial planning and risk management for individuals and families in 2023. If you are interested in selling insurance products, get your insurance licenses to become an insurance producer in the State of Washington. Order the online study program, or sign up for exam prep class today!