Life insurance application activity in Canada jumped notably month-over-month in February 2022, but declined year-over-year, continuing a pattern of year-over-year declines that began in July 2021.
According to the most recent MIB Life Index report on Canadian life insurance application activity from Massachusetts-based, MIB Group, Inc., year-over-year application activity declined 8.4 per cent in February 2022, compared to February 2021. The declines contributed to a year-to-date decline of nine per cent as of the end of last month.
Month-over-month, the figures reflect what MIB calls a positive seasonal trend, increasing 17.4 per cent when compared to application activity in January 2022.
“February saw declining or flat year-over-year activity across all age groups, including double-digit declines for ages 31-50,” MIB researchers write. “February saw year-over-year, double-digit declines in application activity for face amounts up to and including $500,000 and growth for all other face amounts, in the double digits for face amounts over $1-million, up to and including $5-million.
They add that activity patterns where product types were submitted to MIB, show that universal life application activity grew, while whole life and term life application activity declined. “Year-over-year activity for term life showed double-digit growth for ages 61+ and declined for all other ages groups. Universal life saw year-over-year growth for ages 0-70, in the double digits for ages 31-70, while ages 71+ saw double-digit declining activity. Whole life saw year-over-year growth for ages 0-30 and declines across all other age bands, in the double digits for ages 51+,” they conclude.
