According to actuarial consultant Life Strategies, sales of single-premium life insurance policies plunged by as much as 50% in the first quarter of 2008, defying reports that the life insurance sector was staying stable despite the credit crunch.
The figures, which show life insurance sales slumping 54%, indicate how strongly the life insurance sector has been hit by problems in the financial and property markets. However, the figures are limited to the Irish life insurance market .
Standard Life, Irish Life &Permanent and Hibernian have all hinted that the life insurance market is weaker than expected, but the tail off in single premium sales is sharper than expected.
Whether or not the worst is over remains to be seen, with some life insurance companies saying that the market will now recover.




