The life insurance industry received some upsetting news today. According to LIMRA, total individual life insurance new annualized premium fell seven percent in the first quarter 2014.
In its Retail Individual Life Insurance Sales Report, points to universal life sales as the culprit for the drop. ”The decline is being driven by the drop in universal life sales – particularly guaranteed universal life, which fell 48 percent,” said Benjamin Baldwin, associate analyst, LIMRA Insurance Research. “Responding to new reserving requirements implemented in 2013, we saw companies re-pricing or adjusting features on their guaranteed universal life products. If you took guaranteed universal life out of the equation, total individual life premium would actually increase just under one percent.”