Life policy sales up over 2001

Amanda Jarvis

May 8, 2002

The volume of life assurance sold has increased by 16.9 per cent since 2000 and financial advisers are playing an increasingly large part in that distribution, according to a survey from re-insurer, Swiss Re.

In the marketplace, term policies account for 64.8 per cent of all regular premium life policies sold in 2001 in contrast with 23.8 per cent in 1995.

However, the increased concentration means that the top five providers made 59.1 per cent of new sales in 2001, with Norwich Union answering for the largest volume.

The average sum assured has increased from GBP 74, 052 in 2000 to GBP 82,835 during 2001, although the average assured by IFAs was higher at GBP 96,899.

Despite the fact 53 per cent of term sales in the UK are mortgage related, the survey still revealed a massive mortgage protection gap among UK property owners.

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