Time period life insurance coverage new premium rose 8% within the first quarter, with 40% of time period life writers reporting double-digit will increase, in line with LIMRA knowledge.
The time period premium improve is the very best because the second quarter 2007, in line with LIMRA’s First Quarter 2020 U.S. Particular person Life Insurance coverage Gross sales Survey. Sixty p.c of time period life writers reported constructive progress.
LIMRA attributed a few of time period’s success to on-line entry and instruments that helped with gross sales to homebound shoppers. Different life merchandise didn’t fare as nicely however that was not surprising due to a late 2019 gross sales push earlier than a brand new CSO desk took impact.
Time period market share jumped to 24% within the first quarter 2020. Since 2011, time period premium market share has been within the 21-22% vary.
Insurance coverage brokers account for the biggest share of time period premium (38%) and reported progress of 11% over first quarter 2019, LIMRA reported.
Exterior of time period life gross sales, a lot of the remaining life insurance coverage merchandise posted sluggish first-quarter gross sales, LIMRA reported. The full variety of particular person life insurance coverage insurance policies offered within the first quarter fell 1%, in contrast with the identical quarter of the prior yr.
- Common life new annualized premium fell 3%, pushed primarily by a decline in mounted UL gross sales. Complete common life held 34% of the entire U.S. life insurance coverage market.
- Listed UL (IUL) new annualized premium decreased 2% within the quarter, with 40% of IUL writers reporting constructive progress. IUL represented 70% of UL and 24% of all particular person life premium.
- Mounted UL new annualized premium fell 5%. Mounted UL new premium dropped 11 of the previous 12 quarters. Mounted UL was 30% of complete UL gross sales and 10% of complete life premiums within the first quarter.
- Variable common life (VUL) new annualized premium climbed 3% within the first quarter. VUL represented 7% of the entire U.S. life insurance coverage, which is 1% larger than first quarter 2019.
- Complete life (WL) new annualized premium dropped 1% within the first quarter, the second consecutive quarter of declines. WL premium represents 35% of the entire particular person life insurance coverage market. That is the bottom market share for WL since 2015.
Nevertheless, this slowdown was anticipated given the year-end push to promote merchandise based mostly on the 2001 CSO tables.
“Despite the current quarter decline, IUL products continue to be attractive to consumers who are seeking greater investment returns yet fearful of market volatility,” famous Tumicki “This is the first decline in IUL growth in more than three years. IUL had experienced positive growth in 14 consecutive quarters (since second quarter 2016).”
LIMRA’s First Quarter 2020 U.S. Particular person Life Insurance coverage Gross sales Survey represents roughly 80% of the U.S. particular person life insurance coverage annualized premium market.
InsuranceNewsNet Senior Editor John Hilton has lined enterprise and different beats in additional than 20 years of day by day journalism. John may be reached at [email protected] Observe him on Twitter @INNJohnH.
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