A steady decline in single-premium sales caused individual life insurance premiums sold through banks to decline for the second consecutive year in 2006, according to Kehrer-Limra International.
The Princeton, N.J., consulting firm's survey found that premiums fell from a high of nearly $1.3 billion in 2004 to $1.06 billion last year.
Banks sold 11% fewer single premiums last year, after a 12% decline in 2005, and first-year premiums were only even with 2005's. Overall, bank life sales dropped 9%.
Overall, first-year premiums were even with 2005 and represented 16% of bank sales. In addition, the bank market's share of the life industry declined as a percentage of annualized new premium, both overall and at the product basis level. Kehrer-Limra released the report Thursday.
