Combined Sales Premium Dipped
Participating companies reported $3.2 billion in combined GTL and AD&D new sales premium in 2023, with GTL accounting for 92% of the total.
Combined GTL and AD&D new sales premium declined 2% in 2023.
GTL new sales premium was down 3% in 2023, due to a small handful of carriers experiencing double-digit premium declines.
The top 10 companies held 84% of the market share for new sales premium, contributing approximately $2.4 billion of total 2023 sales.
AD&D sales premium has remained positive over the past five years; 11 of the 24 companies reporting AD&D sales premium experienced a positive change in their 2023 results; seven saw double digit growth.
Mixed Picture for Sales Cases and Lives
GTL new sales case counts and inforce case counts both grew by 1% in 2023.
For companies providing sales case size breakdown information for the two-year period, the 10‑99 category continues to account for the highest percentage of cases (56%), followed by the 1‑9 grouping (25%). Results were similar for inforce (52% and 30%, respectively). Less than 1% fell in the 5,000+ range for both sales and in‑force.
Three out of 25 companies posted growth over 20%, contributing to the overall positive result in 2023 case sales. Most companies (60%) continue to see declines in their new sales case counts. After a drop in 2022, new sales lives rose by 5% in 2023. Inforce lives grew by 6% year-over‑year.
GTL Pricing and Volume Levels Trended Down
Average face amounts for new sales declined by 4% in 2023. In‑force average face amounts dropped below $100,000 for the first time since 2019.
Monthly premium rates were also down for new sales, dipping 6%. Inforce premium rates stayed level.
Sixty percent of companies saw a decline in their average face amount for new sales in 2023.
As with past years, a small number of companies with negative growth strongly influenced the average premium per life new sales result. Nearly two-thirds of companies saw growth.
For more details, you can see the summary report from the Gen Re Research Center – and if you have any questions about its findings, don’t hesitate to reach out to me.