The life insurance industry has emerged from the doldrums to face strong growth prospects in the next five years, according to Ibisworld analysts.

The business information provider claims the global downturn has spurred a radical increase in demand for death, disability and critical illness cover, reversing a 2.3% annual decline in premiums over the past decade.

“The global financial crisis not only undermined job security and wealth creation after an extended period of prosperity, it also delivered a reminder of the need for adequate protection in case life serves up an unwelcome surprise,” analysts said in an Ibisworld Industry Insight report.

Ibisworld has forecast an 11.5% rise in premium income in the 2009/10 financial year, contributing to overall revenue growth of 194.7%.

Premium income is forecast to grow by an average of 2.2% per year over the next five years, supported by strong growth in investment earnings.