Complete U.S. particular person life insurance coverage new annualized premium elevated 2% within the third quarter, in contrast with prior yr outcomes, in accordance with the LIMRA U.S. Retail Particular person Life Insurance coverage Gross sales Survey.
12 months-to-date whole particular person life insurance coverage new annualized premium rose 1%, in contrast with outcomes from the primary 9 months of 2018. The variety of insurance policies bought fell three% within the third quarter and yr so far.
“Listed common life (IUL) continued to drive general new premium development. The truth is, IUL has been the largest contributor to particular person life insurance coverage premium gross sales development for 9 of the final 10 quarters. IUL gross sales climbed 7% for the quarter and the yr up to now, with half of the businesses reporting will increase,” stated Ashley Durham, affiliate analysis director, LIMRA Insurance coverage Analysis. “IUL represented one quarter (25%) of the person life insurance coverage premium bought throughout the first 9 months of 2019.”
Common life (UL) new annualized premium rose 2% within the third quarter, nonetheless, UL new premium remained flat within the first 9 months of the yr, in comparison with prior yr. Complete UL market share was 36% yr so far, LIMRA reported.
Mounted UL In Decline
Mounted UL declined 7% within the third quarter and 11% yr so far. That is the 10th consecutive quarter of declines for mounted UL merchandise, LIMRA stated.
Mounted UL merchandise with lifetime ensures fell 15%, current-assumption mounted UL dropped 16%, and accumulation-fixed UL product premium fell 22%, in contrast with third quarter 2018 outcomes.
Variable UL (VUL) new premium elevated 2% within the third quarter, year-over-year. That is the eighth consecutive quarter of will increase, in contrast with prior yr outcomes. Safety-focused VUL new premium improved eight%, driving general VUL development within the third quarter.
Accumulation-focused VUL new premium fell three% within the third quarter. Regardless of the expansion, solely three in 10 VUL writers reported will increase in new premium within the third quarter.
12 months so far, VUL new premium grew 7%. For the primary 9 months of 2019, VUL held 7% of the overall U.S. particular person life insurance coverage market.
Entire Life (WL) new annualized premium was flat within the third quarter and yr so far. Whereas solely a few third of entire life producers reported development this quarter, 1 in 5 producers reported double-digit will increase. Within the first 9 months of 2019, WL premium represented 35% of the overall life insurance coverage market.
Time period life insurance coverage new premium grew three% within the third quarter and a pair of% yr so far, in contrast with 2018 outcomes. Greater than half of the time period producers (55 %) reported will increase in new premium. Time period life market share remained at 22% by third quarter 2019.
LIMRA’s Third Quarter 2019 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.