Windsor, Conn., Nov. 27, 2007 – LIMRA International reports U.S. individual life insurance premium increased twenty percent in third quarter 2007 resulting in an eight percent increase for the first nine months of 2007 over 2006.
“Corporate-owned life insurance (COLI) (cases of 200 lives or less) and private placement sales made a significant impact this quarter,” said Ashley Durham, LIMRA analyst for product research. “In addition, companies noted that increased service to and expansion into new distribution channels (such as BGAs/MGAs/wholesalers) also affected sales tremendously.”
LIMRA also reports that total face amount in the third quarter rose by six percent over 2006, while the total number of new policies sold declined by one percent.
All products were up through the first nine months of 2007, especially universal and variable universal life, which were up 9 and 10 percent (23 and 55 percent for the quarter). Year-to-date, term life grew seven percent and whole life grew three percent.
The biggest portion of the sales increases seen through the third quarter stem from the brokerage channel. In fact, with the exception of WL, all products were up especially UL and VUL which were up 16 and 19 percent for the year and 28 and 110 percent for the quarter.
Universal life continued to hold the lion’s share of annualized premium through the September of 2007 at 40 percent while term and variable universal life remained steady at 23 and 15 percent respectively.
About LIMRA International
LIMRA International is a worldwide association providing research, consulting, and other services to nearly 850 insurance and financial services companies in more than 73 countries. LIMRA was established in 1916 to help its member companies maximize their marketing effectiveness. www.limra.comTags: LIMRA