IUL New Premium Up 10 P.c In 3Q, LIMRA Experiences

0
259

Powered by sturdy listed common life (IUL) gross sales, U.S. life insurance coverage new annualized premium elevated three p.c within the third quarter, in response to the LIMRA U.S. Retail Particular person Life Insurance coverage Gross sales Survey.

That is the second consecutive quarter of constructive progress. Within the third quarter, IUL new premium climbed 10 p.c and 12 p.c year-to-date. IUL premium represented 65 p.c of UL premium, and 24 p.c of all particular person premium for the primary three quarters.

“Market circumstances proceed to be favorable for IUL merchandise. IUL premium has elevated for the previous eight consecutive quarters,” mentioned Ashley Durham, affiliate analysis director, LIMRA Insurance coverage Analysis. “IUL inherently consists of safety towards market associated loss, and this safety mixed with accumulation potential has propelled gross sales within the first three quarters of 2018. In reality, accumulation centered IUL premium jumped 16 p.c for the quarter and 19 p.c year-to-date.”

Complete common life (UL) new annualized premium elevated 1 p.c within the third quarter. UL gross sales progress total remained subdued by mounted (non-indexed) UL outcomes.

Product discontinuation and price hikes (primarily associated to persistently low rates of interest) continued to beset the mounted UL market. Within the first three quarters of 2018, UL premium was flat in comparison with final yr. Complete UL market share is 37 p.c.

Lifetime Assure Common Life (LTGUL) declined for the sixth consecutive quarter, down 10 p.c within the third quarter. Yr-to-date LTGUL fell 16 p.c, in contrast with prior yr. LTGUL represents 17 p.c of UL gross sales and 6 p.c of whole life premiums.

“Variable common life (VUL) new annualized premium elevated 29 p.c for the quarter and 14 p.c year-to-date,” Durham famous. “Eight of the highest 10 VUL writers improved their gross sales over third quarter 2017,driving this quarter’s progress. The highest 10 writers symbolize 90 p.c of the trade’s VUL premium. On the design stage, merchandise with a better concentrate on safety had been significantly profitable; in reality, their share of VUL annualized premium reached 50 p.c in 2018 as folks more and more stability security with progress potential.”

VUL held a 6 p.c market share of whole particular person life insurance coverage within the first 9 months of 2018.

Entire Life (WL) new annualized premium rose three p.c within the third quarter. 4 of the highest 10 corporations reported progress within the quarter.

Brokerage producers boosted WL gross sales over third quarter 2017. WL premium offered by insurance coverage brokers — together with BGAs — jumped 21 p.c, in contrast with prior yr. Whereas affiliated WL premium was down 2 p.c for the quarter, affiliated brokers continued to carry the lion’s share of the WL market by way of premium (at 64 p.c).

Yr-to-date, WL premium progress improved 1 p.c. WL premium represented 36 p.c of the full life market within the first 9 months of 2018.

Time period life insurance coverage new premium grew 1 p.c within the third quarter and year-to-date, in contrast with 2017. Forty-three p.c of taking part U.S. time period writers reported will increase for the quarter, and greater than half of the highest 20 time period carriers reported constructive progress.

Time period life premium market share was 21 p.c within the first three quarters of the 2018.
Yr-to-date, whole life insurance coverage new annualized premium rose 1 p.c, in comparison with the primary three quarters of 2017. Coverage depend was flat within the third quarter and fell 1 p.c within the first 9 months of 2018.

LIMRA’s Third Quarter 2018 U.S. Particular person Life Insurance coverage Gross sales Survey represents roughly 80 p.c of the U.S. particular person life insurance coverage annualized premium market.

LEAVE A REPLY

Please enter your comment!
Please enter your name here