U.S. Particular person Life Insurance coverage Gross sales Flat In Second Quarter 2019

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Courtesy of LIMRA

Complete U.S. particular person life insurance coverage new annualized premium progress was flat within the second quarter and the primary half of 2019, in contrast with prior 12 months outcomes, based on the LIMRA U.S. Retail Particular person Life Insurance coverage Gross sales Survey.

Within the second quarter, the variety of insurance policies offered decreased 5%, in contrast with second quarter 2018. Yr-to-date, coverage rely dropped four%.

Common life (UL) new annualized premium fell 1% within the second quarter. Because of this, UL premium was flat within the first half of the 12 months, in comparison with prior 12 months. Complete UL market share for the second quarter was 36%.

“Whereas mounted UL merchandise continued to dampen general UL premium progress, listed merchandise, that are extra proof against the pressures of low rates of interest and mix market progress potential with market loss safety, continued to shine,” mentioned Ashley Durham, affiliate analysis director, LIMRA Insurance coverage Analysis.

Listed UL (IUL) recorded its eleventh consecutive quarter of recent premium progress with half of IUL producers reporting progress, together with 6 of the highest 10 high writers. IUL new premium rose four% within the second quarter and seven% year-to-date. IUL gross sales represented 67% of UL premium and 24% of all particular person life insurance coverage premium within the second quarter.

Lifetime Assure Common Life (LTGUL) declined 11% within the second quarter. That is the ninth consecutive quarter of declines for LTGUL. Six in 10 LTGUL writers reported decreased gross sales within the second quarter. Yr-to-date, LTGUL fell 12%, in contrast with prior 12 months. LTGUL represented 15% of UL gross sales and 5% of whole life insurance coverage new premium within the second quarter.

Safety-Centered Merchandise

“Variable common life gross sales elevated for the seventh consecutive quarter,” Durham mentioned. “A lot of this progress displays the continued success of some corporations’ protection-focused merchandise that characteristic the potential for a lifetime assure.”

Variable common life (VUL) new annualized premium elevated 7% within the second quarter and 9% year-to-date. Lower than half of the VUL writers reported constructive sale progress within the second quarter.

The most important driver of progress for VUL merchandise continues to be protection-focused merchandise. New premium for protection-focused merchandise grew 23%, whereas premium for accumulation-focused merchandise declined 10% within the quarter. VUL held a 6% market share of whole particular person life insurance coverage within the second quarter.

Entire Life (WL) new annualized premium was flat within the second quarter, in comparison with second quarter 2018. Almost 6 in 10 corporations reported declines within the quarter. Yr-to-date, WL premium progress fell 1%. WL premium represented 36% of the whole life insurance coverage market within the second quarter.

“The long-term low rate of interest atmosphere continues to impression complete life reserves and dividends, which has affected complete life gross sales,” Durham mentioned. “Nonetheless, elevated market volatility and discuss of a attainable recession may drive extra folks to decide on merchandise like complete life to lock in assured returns.”

Time period life insurance coverage new premium grew 1% within the second quarter and year-to-date, in contrast with 2018 outcomes. About half of all time period writers reported will increase in premium, together with 5 of the highest 10 producers. Time period life market share was 22% in second quarter 2019.

LIMRA’s Second 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.

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