In the first quarter, universal life insurance premium grew by 8%, which is expected to be a result of strong indexed sales. The premium growth is approximately 23% higher as compared to the figures in the first quarter last year. This makes 2013 Q1 the 16th consecutive growth quarter for universal life insurance. From an overall perspective, the premium figures in this segment represent almost 40% of total individual life insurance market. According to experts, in Q1 2013, universal life insurance was the biggest driving factor towards growth with indexed UL witnessing the highest increase in terms of dollars.
However, the policy count in UL declined by 18% in the first quarter, with the major reason being the companies discontinuing with their term UL insurance policies. Lifetime guaranteed UL insurance premium has shown positive figures throughout the first quarter in 2013, which increased by 9%. While certain companies have reported significant declines, others have witnessed strong growth owing to factors such as fire sales, enhanced competitive positions, and the capability to keep the costs to a minimum. This insurance segment now represents almost 35% of the overall UL premium, falling from a whopping high 53% in 2009. However, it still holds the largest share in the segment of new UL premium.
The sales trend for whole life insurance remained stronger in 2013 Q1. Annualized premium payments increased approximately 7% in the first quarter, making it the 15th consecutive quarter of positive growth. As similar to other product lines in the category, except term, the policy count for Whole life declined 5% as compared to the first quarter in the last year. The market share in the first 3 months in 2013 was 33%. On the other hand, term premium increased by 3% and policy count grew by 1% in the first quarter. Variable universal life premium also increased 10% in Q1.
