Life insurers seemed to hold their own in 2005 when it came to toeing the line on insurance operating expenses and lapses.
Insurance expenses inched up very slightly and lapses declined slightly even as premium and annuity considerations grew, according to data taken from the National Association of Insurance Commissioners annual statement database via National Underwriter Insurance Data Services/Highline Data.
For the top 50, premium and annuity considerations increased 5% to $376.5 billion in 2005 compared with $358.3 billion in 2004.
Insurance expenses as a percentage of average in-force, ordinary business, however, remained almost unchanged at 12.6% in 2005 compared with 12.5% in 2004.
In general, insurance expenses include commission expenses and general expenses divided by premium and annuity considerations. The growth in premium and annuity considerations may, in part, explain why the expense percent remained relatively constant.