Life Insurance Premium Down, Policy Sales Up In Mixed 2020 Data
March 23, 2021 by Staff Reports
While total life insurance new annualized premium fell 3% in 2020, the number of policies sold in 2020 increased 2% for the year, driven by strong whole life and term sales, according to LIMRA’s U.S. Individual Retail Life Insurance Sales Survey.
“In 2019, fourth quarter premium jumped 15% ahead of the mandatory adoption of the 2017 CSO tables and principle-based reserving that would be implemented on Jan. 1,” said Elaine Tumicki, corporate vice president and director of LIMRA’s Insurance Product Research. “As a result, LIMRA projected overall premium to normalize in 2020 even before the pandemic. COVID-19 introduced additional operational challenges for carriers and distribution that were unexpected and impacted UL sales significantly.”