Best's Rankings: US Individual Life Lapse Ratio Published for 2023 Was 5.1
OLDWICK, N.J. //BestWire// - U.S individual life insurers saw a total industry lapse ratio of 5.1 in 2023, with renewal premium persistency checking in at 86.9, according to a new Best's Rankings report. The average policy size, both issued and in force, was $169,000.
Northwestern Mutual Group assumed the top spot in the rankings, issuing $190.99 billion in individual life insurance policies in 2023, according to the report. The average policy issued was $574,000, while the average policy in force was $361,000. Its lapse ratio published was 3.5, and its renewal premium persistency was 94.1, the highest in the top 10.
Each of the top-five insurers maintained renewal premium persistency rates above 90, including No. 2 State Farm Life Group, which had a rate of 93.5 and a lapse ratio published of 5.4. It issued $117.10 billion in individual life insurance, at an average of $158,000, according to the report. Its average policy in force was $134,000.
Rounding out the top five were Primerica Group, with a lapse ratio of 8.7 and renewal premium persistency of 91.1; New York Life Group, with a lapse ratio of 4.4 and a renewal premium persistency of 93.3; and Massachusetts Mutual Life Group, with a lapse ratio of 3.8 and renewal premium persistency of 92.3.
The highest lapse ratio among the top 10 belonged to No. 8 Pacific Life Group, at 16.3. Its renewal premium persistency was 71.5. It issued $73.86 billion in individual life insurance, at an average of $977,000, with an average in force of $850,000, according to the report.
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AM Best data sourced from Best’s Financial Suite, US.
(By Anthony Bellano, associate editor, Best's Review: anthony.bellano@ambest.com)