Total US individual life insurance new annualised premium slipped 1% year over year to $3.76bn in the first quarter, according to industry group LIMRA’s preliminary U.S. Life Insurance Sales Survey. The total number of policies sold also dropped 1% in the first quarter.
“Overall, a large proportion of carriers reported gains in both premium (7 in 10) and policy sales (6 in 10) in the first quarter. Every product line except whole life posted positive growth,” said John Carroll, senior vice president, head of Life & Annuities, LIMRA and LOMA.
“The industry must innovate to reach underserved markets and grow the U.S. market. The 2024 Insurance Barometer Study shows there are more than 100 million Americans who say they need (or need more) life insurance.
“It is important that we continue to leverage digital advances to make it easier for today’s consumer to learn about and buy the life insurance they need to protect their loved ones,” he added.
Despite the headline drop-off, universal life insurance policies – those that comprise a significant chunk of the life settlement industry, whether that be in the secondary or tertiary market – saw general gains.
Indexed universal life (IUL) premium was $930m, 4% higher than results from prior year. Variable universal life (VUL) new premium increased 4% in the first quarter to $427m, although policy count fell 4% compared with first quarter 2023. Fixed universal life (fixed UL) new premium was $250m, up 9% year over year although, like in VUL, the number of policies sold fell 11% from first quarter 2023 results.
VUL premium held 11% of the total U.S. life insurance market in the first quarter.
