Global mortality resilience edged higher in 2024, yet the protection gap reached a record $432 billion, leaving households without about 56% of the financial cover needed after a breadwinner’s death.
Swiss Re Institute reported that its Mortality Resilience Index rose to 44.4% in 2024 from 43.6% a year earlier, but remained below 45.6% in 2014. The index measures the ratio of available financial protection to required protection following a loss of income.
The protection gap increased to $432 billion in premium equivalent terms, up from $423 billion in 2023 and $321 billion in 2014. The increase corresponds with higher income replacement needs, rising debt levels, inflation, and economic development.
This trend is consistent with wider industry estimates. Deloitte’s 2026 insurance outlook places the global protection gap across lines at $183 billion, pointing to a broader shortfall in coverage across both life and non-life segments.
Data shows that the gap has risen in both advanced and emerging markets over the past decade, by 36% and 34% respectively in nominal terms.
Advanced markets recorded resilience of 57.1% in 2024, down from 61.0% in 2014, with a protection gap of $161 billion. In the United States, resilience declined to 50%, while the gap approached $83 billion. The United Kingdom saw its index fall from 73% to 58%, with the gap reaching $7.5 billion.
Emerging markets showed resilience of 32.6%, up from 29.2% in 2014, but the protection gap reached $271 billion, accounting for 63% of the global total. China’s resilience improved by 6.2 percentage points, though its gap stood at $76 billion in 2024.
The protection gap is not limited to individuals. Research published in the Hiscox Protection Gap report shows that up to 74% of small businesses across the United States, United Kingdom, France, Germany, Spain and Portugal report some level of underinsurance.
The report, based on a survey of 6,250 small business owners, found that misunderstandings of coverage contribute to the gap. More than half of respondents were unable to accurately describe what policies such as public liability, professional indemnity, and cyber insurance cover.
Coverage limits also remain constrained. 65% of small businesses reported public liability limits below $/£/€1 million, while 60% reported similar limits for professional indemnity.
Swiss Re Institute expects life risk premium growth to be higher in emerging markets. Excluding China, premiums are projected to grow by close to 5% annually over the next decade, compared with 3.5% in the previous ten years.
Insurance penetration remains lower in these markets at about 2%, compared with 4% in advanced economies. Survey findings cited in the report indicate that around 60% of respondents in emerging Asia-Pacific expressed interest in purchasing life protection within the next year, compared with roughly one-third in advanced Asia-Pacific markets.
In China, premium growth is expected to slow to below 3% annually between 2026 and 2035, compared with 8.6% in the previous decade.
Advanced markets continue to face demographic shifts affecting life insurance demand. Slower population growth, lower fertility rates, and longer life expectancy are influencing household structures and protection needs.
Single-person households have become more common, including in Japan where they account for 34% of households, compared with about 20% in 1980. The population aged 65 and older in high-income countries is projected to grow by about 35% by 2050.
These changes correspond with increasing demand for retirement income, longevity, and health-related products, while traditional mortality protection demand shows slower growth.
