Individual life insurance premiums sold through banks in 2006 fell to $1.06 billion, down 11% from around $1.17 billion in 2005.
The 2005 sales figure was itself down 12% from 2004, when banks reported nearly $1.3 billion in life premiums, according to Kehrer-LIMRA, a unit of LIMRA International, Windsor, Conn.
Sales in banks were pulled down by a steady decline of single-premium products, says Kenneth Kehrer, director of the survey.
Competition with rates on certificates of deposit hurt bank single-premium sales, he says. Single-premium sales dropped 11% in 2006, to $889 million.
First-year premiums plateaued between 2005 and 2006, and total bank life sales fell 9%, Kehrer says.
First-year premiums accounted for 16% of total bank life sales in 2006, Kehrer says.