Mortality Table Shift Hits Q1 Non-Variable Life Sales
Combined sales of indexed life, universal life and whole life fell 7.3%.
New U.S. sales of non-variable, individual life insurance coverage were soft in the first quarter, according to new insurer survey data from Wink Inc.
The firm now tracks sales of three types of life insurance: indexed life insurance, universal life insurance, and whole life.
Combined sales of those three types of products fell to $1.8 billion in the latest quarter, from 7.3% from the total for the first quarter of 2018.
(Related: Indexed Life Sales Keep Growing: Wink)
Sales of indexed life increased 1%, year-over-year, to $491 million.
Sales of whole life fell 2.8%, to about $1 billion.
Sales of universal life fell 29.5%, to $277 million
Sheryl Moore, president of Wink, said in a statement that she believes individual life sales were slow mainly because of a wave of changes related to the shift to the new 2017 Commissioners Standard Ordinary mortality tables.
“If companies’ sales aren’t down because their field force isn’t up-to-date on their reprice for the new mortality tables, they are down because they are too busy working on new products to focus on sales,” Moore said in the statement.
Resources
A link to a summary of the latest survey results is available here.
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