Bank life insurance sales were lower in 2011 when compared with 2010 but the statistic is deceiving; in the third quarter of 2010, banks sold $513 million in life insurance premiums, more than they had in any other quarter on record.
The findings, coming from the Kehrer-LIMRA Life Report found that bank life insurance sales were lower when compared with 2010, but quarter-to quarter growth in 2011 was steadily positive with the majority of top writers and manufacturers growing their sales during not only the third quarter but also the first nine months of 2011.
The statistics are positive especially when viewed in light of the commotion caused a couple years back when major companies enacted changes in their bank life sales that altered the market and caused sales to plummet; Allstate removed itself from the market and Transamerica eliminated the sale of its leading product.
There have been other changes in the bank life insurance market. A decade or so ago, first –year recurring premium represented half of the dollars sold for both banks and the general market. Myriad of changes have made flexible premium products less of a fit for banks and now 95 percent of the premium sold in banks is paid in one lump-sum according to the report.