LIMRA: 3Q Individual Life Insurance Sales Up 6%
Posted on 27 November 2011
Total individual life insurance premium grew six percent in the third quarter and five percent in the first nine months of 2011, due in large part to robust whole life sales (WL), according to LIMRA’s U.S. Individual Life Insurance Sales report.
“The biggest driver of individual life insurance growth in the third quarter was WL, whose premium increased 10 percent both for the quarter and year-to-date,” said Ashley Durham, senior research analyst, LIMRA product research. “WL is likely benefiting from premium and cash-value guarantees along with lifetime coverage, which are leading concerns for buyers — concerns that are likely compounded during times of economic uncertainty. It’s the only product to produce positive growth in each of the past five years, and, so far in 2011, nearly three quarters of the writers were able to grow their sales; more than half managed double-digit increases.”
Mutual companies, representing just a quarter of the WL manufacturers, reported more than half of the new WL premium and are responsible for half of the absolute dollar growth year-to-date. But success has not been limited to mutual companies. Stock companies increased their sales by 11 percent and fraternal companies, while only representing just about five percent of total sales, grew their WL sales by 25 percent.
Affiliated agents sold nine percent more WL premium in the first nine months of 2011, representing three quarters of the WL premium. Independent producers sold 18 percent more WL premium and direct marketing methods brought in seven percent more WL premium. Other channels such as bank and worksite, which represent a small portion of annualized premium sales, enjoyed double-digit growth.
WL policy count is also growing, up five percent for the quarter and six percent year-to-date.
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