Last month, the total premiums of traditional life insurance policies increased to $1.56 billion, the sale of investment products, on the contrary, fell by 14.7% in annual terms. The experts believe that investment products are less popular because they offer low returns due to instability in global financial markets. Six of the country's largest insurers in a row have been reducing interest rates from month to month. As a result, the customers prefer classic products.
“Over the eight months, the life insurance premiums have grown by 10.3% to $555.15 billion, while the premiums from investment insurance for the same period have fallen by 21.4% to $123.51 billion," the LIA report says.
Besides, as insurers continue to cut rates, the traditional life insurance product sales may improve in the short term.
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