Life Insurance Industry Resiliency: A Steady Force in Uncertain Times

When uncertainty strikes, the life insurance industry has historically stood as a steadying force for individuals and families across the United States. The concept of life insurance industry resiliency is not new—it has been demonstrated time and again over the past 150 years.

Throughout financial crises, global pandemics, and recessions, the U.S. life insurance industry has consistently met its commitments to policyholders. During the COVID-19 pandemic alone, life insurance companies paid out over $90 billion to beneficiaries in 2020, the highest single-year total on record. This commitment to stability fueled renewed consumer trust, leading to the industry’s largest sales gains since 1983.

History shows that this resiliency is not a short-term phenomenon. Many of the leading life insurance companies operating today were founded well before the Great Depression—and even the Spanish Flu pandemic of 1918. Fourteen of the 37 largest U.S. life insurance groups have been in business for over 150 years, weathering the Panic of 1873, the Great Depression, the 2008 financial crisis, and more.

Why has life insurance industry resiliency remained so strong? A key factor is the structure of life insurance liabilities. Unlike banks, which hold a large proportion of demand deposits that can be withdrawn quickly during times of stress, life insurers manage contingent liabilities—benefits paid upon specific events such as death or disability. This model, combined with rigorous state-level regulatory frameworks, helps insulate life insurers from liquidity pressures.

At Tenzing Insurance Strategies, we understand the value of long-term financial well-being and the role resilient planning plays in building lasting financial strategies. The strength of the life insurance industry offers a foundation clients can trust as they look to the future.