Massachusetts-based, MIB Group released its January 2022 application activity statistics reflected in the MIB Life Index. The monthly report shows that U.S. life insurance application activity declined year-over-year in January by 4.8 per cent, the second consecutive month of year-over-year declines.
When compared to the same month in January 2020 and 2019, activity was flat. Month-over-month, activity was up just 2.9 per cent.
Across almost all age bands activity declined, while activity for applications among those over age 71 was flat. Application activity among those between ages 61 and 70 declined the most, dropping 7.1 per cent during the month.
Applications for face amounts up to and including $500,000 represented 74 per cent of total reported activity in January. Growth was seen for face amounts over $500,000, up to and including $1-million. Activity was flat for face amounts over $1-million, up to and including $5-million. MIB says there was double digit growth during the month for amounts over $5-million.
Looking at the flat activity in applications among those over age 71, MIB breaks this number down further to show that there was declining activity for amounts up to and including $250,000, flat activity for amounts between $250,000 and $500,000, double digit growth for amounts over $500,000 and triple digit growth for amounts over $5-million.
“It is important to note that since only 26 per cent of total activity volume is attributable to policies with face amounts over $500,000, small changes in activity in these higher face amounts can drive high year-over-year percentage changes, especially when broken down by age band,” they write.
Overall, January 2022 saw declining activity in all product types: Term life application activity dropped 6.8 per cent, Universal Life was down 10.7 per cent and whole life dropped 8.6 per cent.
