Life insurance application activity climbs in Canada

The MIB Life Index for July 2024 is now available from data and digital solutions firm, Massachusetts-based MIB Group Inc. In the Canadian report, they say life application activity grew 9.7 per cent year-over-year during the month.  

Year-to-date activity was also seven per cent higher when compared to July 2023 application activity. 

Month-over-month, July 2024 was flat, growing just 1.5 per cent when compared to June 2024 figures.  

Across the age bands, applications among those over age 61 increased the most with applications among those between 61 and 70 years of age climbing 18.8 per cent year-over-year in July and with applications among those over age 71 jumping a notable 26.7 per cent. “It is interesting to note that ages 61+ has shown double or triple digit year-over-year growth each month since May 2023,” they write.  

Double digit growth 

By face amount, July 2024 figures show year-over-year growth for all amounts up to and including $5-million and declines for amounts over $5-million. “Ages 71+ saw double digit growth for all face amounts.” 

The monthly report goes on to say that all product types saw year-over-year growth in July, with universal life leading, as insurers report double digit year-over-year growth in application activity for the product across all age bands. Term life applications also grew year-over-year for all age bands. Whole life application activity was flat for those between zero and 30 years of age, but grew for all other ages, again in the double digits for those over age 61.  

“About 34 per cent of total Life Index volume for Canada in July 2024 did not include a product type. We believe the vast majority of these submissions are for life insurance applications and have included them in the composite analysis,” the firm’s researchers write. “Missing product type can have a significant impact on the Canadian analysis. Growth varies when looking solely at submissions identified as life insurance products, with activity up 11 per cent year-over-year for Canada in July 2024 and up 9.8 per cent year-to-date.”