Bank life insurance sales soared to a record high in 2010, although sales declined sharply in the fourth quarter, the first quarter over quarter decrease in seven quarters, according to the fourth quarter 2010 Kehrer-LIMRA Life Report released on Thursday.
Kehrer-LIMRA reported that banks sold $1.8 billion in life insurance premium in 2010, almost, a gain of 40 percent over the 2004 record of $1.3 billion. Nonetheless, sales slumped 21 percent in the fourth quarter to $406 million, down from $512 million in the third quarter, partially due to the fact that Allstate recently left the bank market to increase focus on their property and casualty business. This move meant life insurance was distributed as part of a tri-line strategy (auto-home-life) through Allstate agents. At the same time, Transamerica dropped their single premium universal life product from the bank channel. Single premium policies were behind a substantial portion of the recent uptick in bank life sales, according to Kehrer-LIMRA.
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