Protection providers Bright Grey and Scottish Provident have suffered significant drops in sales over the first half of the year.
Bright Grey's new business fell 21% to £75m (2009 £96m) while Scottish Provident's sales was down 17% to £95m (2009 £114m) both on a Present Value of New Business Premiums (PVNBP) basis.
Under the previous industry standard Annual Premium Equivalent (APE) method, the falls are slightly lower, coming in at 12% for Bright Grey (£14.2m from £16.2m), and 16% for Scottish Provident (£15.9m from £18.9m).
The results could have been even worse for Bright Grey but for a growth in its business protection sales.
The pair are both part of the Royal London group.
Mike Yardley, group chief executive at Royal London, blamed the slow housing market and financial constraints facing many families, resulting in a reduced number of traditional trigger points for protection purchases such as buying a house, getting married, or having children, for the lower figures.
"Protection new business continues to be hard hit by the downturn in the property market and the harsh economic environment," he said.
"Life assurance is, unfortunately, viewed by many as a cost item that can be dispensed with. Both our protection brands have been successful in developing new business in other areas of the protection market and I remain confident that the long-term prospects remain positive."
Overall total new life and pensions business (on a PVNBP* basis) at Royal London increased by 35% to £1,615 million (2009 £1,194m) mainly driven by continuing very strong performance from Scottish Life as well as a healthy increase at Royal London 360°.