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US life insurance sales are rising again.

Which segment represents the biggest market share?

In 2023, the total new yearly premium for US life insurance witnessed a small rise of 1% from the previous year, hitting a record $15.6 billion, based on initial results from the US Life Insurance Marketing Survey conducted by the Life Insurance Marketing and Research Association (LIMRA).

Written by Thelearnvine

The group stated that this is the third straight year of record-setting increase in new annualized premium.

The fourth quarter of 2023 alone experienced a 4% growth in total life insurance premium to $4.2 billion, with policy sales up by 2%, mostly powered by term life insurance’s outstanding performance.

Breakdown the categories, whole life insurance’s fresh premium stayed consistent at $1.6 billion in the fourth quarter, with a tiny 1% increase to $6.1 billion for the year, giving it the largest market slice at 39%.

LIMRA sees a healthy future for whole life sales, estimating up to 5% annual increase in 2024 and 2025.

Term life insurance policies also exhibited growth, with an 8% increase for new premium in the quarter of the year to $756 million and a 6% rise in policy count. For the full year, term life premium grew to approximately $3 billion, a 5% rise from 2022, representing 19% of the market share.

Indexed universal life (IUL) insurance recorded a 3% increase in premium to $1.05 billion in the fourth quarter of the year, with a 12% increase in policy count. However, IUL’s new premium for the year declined by 5% to $3.7 billion, despite a 20% gain in policy sales, accounting for 24% of the total US premium.

Variable universal life coverage also experienced expansion, with an 8% increase in new premium to $524 million in the fourth quarter and an 8% rise to $1.9 billion for the year, retaining a 12% market share.

Fixed universal life (UL) insurance witnessed a 9% increase in new premium in the fourth quarter to $267 million, however the annual premium declined by 3% to $977 million, with a 6% market share.

senior vice president John Carroll,and head of life & annuities at LIMRA and LOMA, underscored the industry’s excellent performance in the post-pandemic era, with large sales improvements achieved by a majority of enterprises, including half of the top 10 carriers.

a significant increase in the number of insurance sold In 2023, insurance count climbed 4%,” Carroll said. “Our market sentiment data suggests that a greater number of individuals started feeling more confident in the economy and their own financial outlook in 2024. This may have spurred people to address their life insurance needs.”

Elsewhere in the industry, a Senate study probed into the pattern of the wealthiest Americans buying high-end life insurance policies to escape billions of dollars in taxes.

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