Canadian life insurance application activity was 1.5 per cent lower in 2021 when compared to 2020 application activity, according to Massachusetts-based, MIB Group, Inc.
The group says the Canadian MIB Life Index showed year-over-year growth from March through June, including double-digit growth in April and May. “This growth was offset by year-over-year declines in the remaining months of the year, including double-digit declines in July, September and October,” they write.
When comparing annual activity in 2021 to pre-pandemic levels in 2019, MIB says application activity in the industry was down 9.2 per cent in Canada.
“Based on information reported to MIB, in 2021 total application activity for policies up to and including $500,000 made up more than 70 per cent of total activity,” the December report states. “Year-over-year declines in activity for these lower face amounts, offset by double-digit year-over-year growth for face amounts over $500,000 drove the composite flat result for 2021.”
They add that almost all age bands saw declines in applications for policies up to $500,000. All age bands saw growth or flat activity for polices over $1-million.
“In 2021, universal life represented 8.9 per cent of total Canadian life insurance activity, while whole life represented 24.4 per cent and term life represented 32.9 per cent. The remaining 33.8 per cent reflects activity where a product type was not provided,” MIB writes. “Although it makes up a small proportion of overall activity, universal life submissions year-over-year for the full year 2021 reflected significant growth at 31.9 per cent. Whole life also saw an increase of 5.4 per cent while term life decreased by 9.1 per cent.” They add that application activity for term life products declined across all age bands during the year.
