Whole life insurance sales dropped four per cent in the third quarter of 2017 after 13 quarters of consecutive growth, says the LIMRA U.S. Retail Individual Life Insurance Sales Survey.
This decline, as well as the drop in lifetime guarantee universal life sales, resulted in total sales decreasing two per cent in the third quarter.
Major driver of overall growth
"Over the past several years, whole life has been a major driver of overall growth in the U.S. market,” said Ashley Durham, associate research director, LIMRA Insurance research. “However, in addition to a significant carrier exiting the market, 64 percent of whole life manufacturers – including 6 of the top 10 – reported declines in the third quarter.”
Sales increase year-to-date
For the first three quarters of the year, total life insurance sales rose two per cent from the previous year.
LIMRA’s Third Quarter 2017 U.S. Individual Life Insurance Sales Survey represents approximately 80 percent of the U.S. individual life insurance annualized premium market.