Number of Canadian life applications grows for the second year running

The MIB Group, creators of the monthly MIB Life Index, have published their final 2024 Canadian life insurance application activity figures showing the industry’s application activity 6.5 per cent higher year-to-date in 2024 when compared with 2023 application figures.

On a year-over-year basis, activity was up nine per cent in December when compared to December 2023, despite December itself being a relatively dismal month: Application activity month over month in December 2024 dropped a notable 18 per cent when compared to November 2024.

When the index is stripped back to only include submissions that are explicitly identified as those being made for life insurance products, December 2024 activity was up 7.4 per cent, year-over-year and finished the year 7.5 per cent higher, year-to-date, when compared to 2023.

A study of age bands, meanwhile, shows relatively low, single-digit growth – until researchers reached the age bands over age 61. Application activity for ages 61 to 70 was up 18.4 per cent year-to-date, while application activity for those over age 71 jumped a notable 45.4 per cent.

“From January to November 2024, ages 61+ showed continuous year-over-year growth, though on a declining scale, while all other age bands fluctuated,” they write. “While ages 71+ outperformed all other age bands during this time, year-over-year growth percentages began to decline sharply, starting in March, until by December the age band was at a decline of -2.8 per cent, year-over-year. All other age bands saw year-over-year growth in December.” 

They say, like 2023, year-to-date results in 2024 were driven by applications for whole life, up 3.8 per cent, and universal life which jumped a notable 28.1 per cent. This offset flat term life activity which declined 0.7 per cent. “Whole life represented 24.9 per cent of total Canadian life insurance activity, while term life represented 23.8 per cent and universal life 17.8 per cent,” they add. “Whole life and universal life saw year-to-date growth across all age bands, in the double digits for universal life. Term life saw year-to-date growth for ages 0 to 30, declines for ages 51 to 60 and flat activity for all other age groups.”