Life insurance sales fell by more than 12 per cent in May

Life insurance activity in Canada has dropped 12.6 per cent, continuing a pattern of year-over-year declines that began almost a year ago, according to the MIB Canadian Life Index as of May 2022. 

On a year-to-date basis, activity through May 2022 was down 10.9 per cent compared to 2021, but on a month-over-month basis, May 2022 activity was flat compared to April 2022, down 1.7 per cent. 

May saw flat year-over-year activity for ages 61-70. Activity declined across all other age bands. Insurance activity for ages 0-30 was down 8.2 per cent, ages 31-50 off 18 per cent, ages 51-60 off nine per cent, ages 61-70 flat, down slightly by one per cent and ages 71 and over fell 9.5 per cent. 

When examining activity by face amount, May saw double-digit year-over-year growth in application activity for amounts over $1 million, flat activity for amounts over $500,000 up to and including $1 million, and double-digit year-over-year declines for amounts up to and including $500,000. 

When including age bands, ages 0-30 saw double-digit declines for face amounts up to and including $500,000, growth for face amounts over $500,000 up to and including $1 million, double-digit growth for face amounts over $1 million up to and including $5 million, and declines for face amounts over $5 million. Ages 31-50 saw double-digit declines for amounts up to and including $1 million and growth for amounts over $1 million, as well as in the double-digits for amounts over $2.5 million. 

Some growth for face amounts up to $1 million 

Ages 51-60 saw double-digit growth for face amounts over $500,000 up to $1 million and face amounts over $2.5 million. All other face amounts saw declines in the double digits for face amounts up to and including $250,000. Ages 61-70 saw double-digit growth for face amounts over $250,000 up to and including $2.5 million, while all other face amounts saw declines. Ages 71 and up had double-digit declines for amounts up to and including $1 million, as well as growth for amounts over $1 million and in the double-digits for amounts greater than $1 million up to and including $5 million. 

When looking at product types, Universal Life showed double-digit year-over-year growth in May, while Whole Life showed declines and Term Life was down by double digits.