The information remains in and it was a great news, bad news second quarter for life insurance policy sales– and COVID-19 effects were felt all over. Total specific life insurance brand-new policy sales increased 2%in the quarter, however brand-new
annualized premium fell 5%, compared to second-quarter 2019 outcomes. Year-to-date, total policy count was up 1%and brand-new annualized life insurance premium dropped 3%, according to LIMRA’s 2nd Quarter 2020 U.S. Individual Life Insurance Sales Survey.” COVID-19 absolutely affected life insurance sales this
brand-new premium, nearly half of companies reported growth in policy sales, mentioning increased consumer interest due to the pandemic and their ability to offer items without conference in person,”stated Elaine Tumicki, business vice president, LIMRA Insurance Research Study.” In LIMRA studies conducted this spring, U.S. providers reported expanding automated underwriting and taking other measures to make it easier for consumers to obtain life insurance while adhering to social distancing guidelines.” As a result, direct-to-consumer sales propelled the growth in whole life policy sales however decreases in other circulation channels muted the extent of this growth
.” Ad While less than half of providers sold more term policies than the second quarter of 2019, overall policy sales increased 6%in the second quarter 2020. Term brand-new annualized premium climbed 3%in the second quarter, with nearly half of the providers reporting growth and a third(32
%)reporting double-digit growth. In the first half of 2020, term brand-new annualized premium was 5% higher than previous year and policy count increased 6%, compared to previous year outcomes. Term market share was 24% second quarter year to date. Considering that 2011, term premium market share has remained in the 21-22%variety. ‘Double-Digit Drop'Whole life(WL )brand-new annualized premium fell 8% in the second quarter, reducing 5%for the first 6 months of the year
. Nevertheless, WL policy count was up 3%in the second quarter however ended the first half of 2020 down 1%, compared to the first 6 months of 2019. WL held 35 %of the market in the first half of 2020.”Direct-to-consumer WL contributed significantly to the boost in brand-new WL policy sales in the second quarter. WL policies sold straight from the maker surged 32%, compared to previous year results, “noted Tumicki.”Declines in affiliated circulation channel sales moistened growth for the quarter. Overall, more than half of WL providers reported lower sales this quarter and nearly half experienced a double-digit drop in premium and policy sales.”
Universal life (UL) brand-new annualized premium plunged 12% in the second quarter with repaired UL falling 21% and indexed UL dropping 8%. Year-to-date, UL brand-new premium was down 8%.
“Ultra-low interest rates weakened the repaired UL market. 3 quarters of repaired UL providers experienced sales decreases in the second quarter,” stated Tumicki. “IUL providers likewise continue to have a hard time under the current financial environment. Two-thirds of IUL providers’ sales fell in the second quarter.”
UL policy sales toppled 15% in the second quarter and 11% year to date compared to previous year outcomes. UL market share was 34% of the total U.S. life insurance market in the first 6 months of 2020.
Variable universal life (VUL) brand-new annualized premium jumped 17% in the second quarter 2020, nevertheless only seven providers reported increased VUL premium in the quarter.
VUL policy sales were down 4% in the second quarter, ending the first half of 2020 up 1%. VUL market share was 7% second quarter year to date.
LIMRA’s 2nd Quarter 2020 U.S. Individual Life Insurance Sales Survey represents approximately 80% of the U.S. specific life insurance annualized premium market.