By Press Release
December 4, 2019
Total U.S.
individual life insurance new annualized premium increased 2% in the third
quarter, compared with prior year results, according to the LIMRA U.S. Retail
Individual Life Insurance Sales Survey.
Year-to-date total
individual life insurance new annualized premium rose 1%, compared with results
from the first nine months of 2018. The number of policies sold fell 3% in the
third quarter and year to date.
“Indexed universal
life (IUL) continued to drive overall new premium growth. In fact, IUL has been
the biggest contributor to individual life insurance premium sales growth for 9
of the last 10 quarters. IUL sales climbed 7% for the quarter and the year so
far, with half of the companies reporting increases,” said Ashley Durham,
associate research director, LIMRA Insurance Research. “IUL represented one
quarter (25%) of the individual life insurance premium sold during the first
nine months of 2019.”
Universal life (UL)
new annualized premium rose 2% in the third quarter, however, UL new premium
remained flat in the first nine months of the year, compared to prior year.
Total UL market share was 36% year to date, LIMRA reported.
Fixed
UL In Decline
Fixed UL declined
7% in the third quarter and 11% year to date. This is the 10th consecutive
quarter of declines for fixed UL products, LIMRA said.
Fixed UL products
with lifetime guarantees fell 15%, current-assumption fixed UL dropped 16%, and
accumulation-fixed UL product premium fell 22%, compared with third quarter
2018 results.
Variable UL (VUL)
new premium increased 2% in the third quarter, year-over-year. This is the 8th
consecutive quarter of increases, compared with prior year results.
Protection-focused VUL new premium improved 8%, driving overall VUL growth in
the third quarter.
Accumulation-focused
VUL new premium fell 3% in the third quarter. Despite the growth, only 3 in 10
VUL writers reported increases in new premium in the third quarter.
Year to date, VUL
new premium grew 7%. For the first nine months of 2019, VUL held 7% of the
total U.S. individual life insurance market.
Whole Life (WL) new
annualized premium was flat in the third quarter and year to date. While only
about a third of whole life manufacturers reported growth this quarter, 1 in 5
manufacturers reported double-digit increases. In the first nine months of
2019, WL premium represented 35% of the total life insurance market.
Term life insurance
new premium grew 3% in the third quarter and 2% year to date, compared with
2018 results. More than half of the term manufacturers (55 percent) reported
increases in new premium. Term life market share remained at 22% through third
quarter 2019.
LIMRA’s Third
Quarter 2019 U.S. Individual Life Insurance Sales Survey represents
approximately 80% of the U.S. individual life insurance annualized premium
market.
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