Total coverage gross sales fell 11% in Q2 and 9% year-to-date, LIMRA stated.
“Our analysis suggests customers are extra involved in regards to the influence of rising inflation and a potential financial downturn and, consequently, have reduce on spending, together with lowering or delaying the acquisition of insurance coverage merchandise,” Carroll stated. “Whereas these financial considerations are reputable, our business wants to emphasise the significance of life insurance coverage to a household’s monetary safety.”
Listed common life (IUL) new annualized premium was up 27% within the second quarter, leading to 33% development for the primary six months of 2022. Two-thirds of all carriers reported IUL premium will increase, together with eight of the highest 10 carriers, LIMRA stated. Money-value accumulation IUL merchandise drove the expansion, representing 80% of IUL premium. IUL premium held 20% of market share of the overall US life insurance coverage premium for the primary half, in accordance with the report.
Learn subsequent: Life insurance coverage gross sales surge in Q3
Variable common life (VUL) new premium rose 29% in Q2, marking its nineteenth consecutive quarter of good points. Within the first half, new premium rose 38% in comparison with the identical interval in 2021. Whereas protection-focused VUL gross sales rose 5%, the vast majority of the expansion got here from accumulation-focused merchandise, which noticed almost 50% development over Q2. VUL held 13% of premium market share within the first half, LIMRA stated.
Mounted common reside new annualized premium fell 14% in Q2 and was down 6% within the first half of 2022. Merchandise with lifetime ensures noticed the most important decline, dropping 32% in Q2. Mounted UL market share remained 7% of the overall US life insurance coverage market within the first half.
Complete life (WL) new annualized premium dropped 3% in Q2, in comparison with the second quarter of 2021, when it rose 25%. Regardless of the decline, WL new premium development was 3% greater than the prior 12 months. WL represented a 3rd of the overall US life insurance coverage market, LIMRA stated.
Time period product gross sales dropped for the third straight quarter. In Q2, time period new premium fell 6% from the prior 12 months and was down 4% YTD. six in 10 firms bought much less premium than they’d in Q2 of 2021. Time period merchandise’ market share represented 19% of the overall US market within the first half.
“Time period and entire life are the mainstay merchandise for a majority of People in search of life insurance coverage safety,” stated Elain Tumicki, LIMRA company vp and director of insurance coverage product analysis. “Regardless of the declines in entire life and time period coverage gross sales this quarter, these merchandise represented 86% of insurance policies bought within the first half of 2022. Our analysis suggests the necessity for all times insurance coverage has by no means been better. To handle the rising protection hole within the US, the business must take daring, modern steps to have interaction and educate People – not simply throughout Life Insurance coverage Consciousness Month, however year-round.”