After two consecutive months of declining U.S. life insurance applications, activity jumped 5.2 per cent year-over-year in May in what appears to be the start of a V-shaped recovery, according to the MIB Life Index.
Applications were down 6.7 per cent February/March and March/April was off 5.5 per cent. But April/May bounced back an unprecedented 1.5 per cent in a time historically off 5 per cent or more as the summer months approach. On a year-over-year basis, May 2020 index was up 5.2 per cent with two less business days than in the 2019 comparative period. Year-to-date, the composite MIB Life Index is a per cent higher than last month, up 1.6 per cent at the end of May.
Younger and middle-aged Americans looking for life insurance
May’s Life Index age groups showed strength in the younger and middle age groups. Ages 0-44 gained 7.1 per cent, ages 45-59 gained 6.9 per cent, ages 60+ were off 1.9 per cent year-over-year. Year-to-date, ages 0-44 are up 3.4 per cent, ages 45-59 are up 0.5 per cent, and ages 60+, while down 1.6 per cent year-to-date, remain about 10 per cent higher than pre-2019 numbers.
Looking at month-over-prior month gain/loss (April 2020/May 2020), application activity ages 60+ showed the greatest recovery from COVID-19 declines up 4.4 per cent, ages 45-59 gained 1.2 per cent, and ages 0-44 gained 0.6 per cent month over month.
The 0-44 age segment represents the largest portion of total MIB Life Index at 52.3 per cent, ages 45-59 are 27.2 per cent and ages 60+ are 20.5 per cent as measured December, 2019.
