Bank Life Sales Rebound From 5-Year Low
Windsor, CT, June 10, 2014…. Total life insurance sales through financial institutions reached $307 million in the first quarter, a 13 percent increase from the fourth quarter. In the fourth quarter sales had dropped to $271 million, the lowest quarterly result since first quarter 2009 when production totaled $190 million, according to the BISRA Life Report.
On a quarterly basis, sales swooned in the second half of 2013, following seventeen consecutive quarters in which production exceeded the $300 million level.
Top Carriers Boost Sales in First Quarter
Market share for the top 5 carriers increased from 75 percent in the fourth quarter to 82 percent in the current quarter. Three of the top 5 carriers increased production from the prior quarter while carriers ranked 6 through 10 all had lower sales in Q1.
Single Premium Gains While First-Year Premium Production Slows
Single premium production increased 16 percent from the fourth quarter while first-year premium sales fell 28 percent quarter-to-quarter. Premium generated by single premium sales accounted for 96 percent of sales this quarter.
Bank Life Premium by Product Type
Whole life product sales exceeded universal life (UL) sales in the first quarter, gaining 50 percent market share. UL market share increased to 48 percent, while term life and variable life account for 1 percent each. Results by product type reflected:
- Universal life sales increasing 36 percent,
- Whole life sales down 1 percent,
- Term premium slipping 7 percent,
- While VUL premium dropped 42 percent.