Life Insurance Activity Back To 2019-20 Levels, MIB Index Reports – InsuranceNewsNet – Insurance News Net
U.S. life insurance application activity declined in February 2022 compared to February 2021, with year-over-year (YOY) activity down -3.8%, representing the third consecutive month with YOY declines, the MIB Life Index reported. On a year-to-date (YTD) basis, activity is down -4.3%. However, when taking a historical lookback, comparing February 2022 activity to the same month in 2020 and 2019, YOY growth was +3.2% and +4.8% and YTD growth was +1.0% and +2.3%, respectively. On a month-over-month (MOM) basis, February showed improvements, posting the second consecutive MOM gain with +7.0% activity.
The 71+ age band was at +4.2% growth in February, while all other age bands declined. Ages 0-30 was down -4.4%, ages 31-50 down -5.1%, ages 51-60 down -3.4% and ages 61-70 down -2.4%.
Activity for face amounts up to and including $5M showed YOY declines, in the double digits for amounts over $2.5M up to and including $5M, and growth for face amounts over $5M.
When examining age bands, YOY activity for ages 0-30 showed declines for amounts up to and including $5M, in the double digits for amounts over $2.5M up to and including $5M and double-digit growth (>35%) for amounts over $5M. Ages 31-50 saw YOY declines for amounts up to and including $5M, in the double digits for amounts over $2.5M up to and including $5M and flat activity for amounts over $5M. Ages 51-60 showed declining YOY activity for amounts up to and including $500K and amounts over $2.5M up to and including $5M, flat activity for amounts over $500K up to and including $2.5M, and double-digit growth for amounts over $5M. Ages 61-70 saw declining activity for amounts up to and including $1M and over $2.5M up to and including $5M, flat activity for amounts over $1M up to and including $2.5M, and double-digit growth (>20%) for amounts over $5M. Ages 71+ saw growth for amounts up to and including $500K, double-digit growth (>45%) for amounts over $1M up to and including $5M and declines for all other face amounts.
February 2022 saw declining activity across all product types with Term Life down -5.1%, Universal Life down -4.5%, and Whole Life down -8.3%. Activity for Term Life showed declining activity for all age bands with progressively sharper declines as age increases, in the double digits for ages 61+. Universal Life saw flat activity for ages 0-30, declining activity for ages 31-70, and growth for ages 71+. Whole Life saw declining activity for ages 0-70, in the double digits for ages 0-50 and flat activity for ages 71+.
