BRAINTREE, Mass. – U.S. application activity for individually underwritten life insurance was up 3.4% in the first half of 2016, according to the latest MIB Life Index, released July 11.
The new report also showed activity was up 1.1% in June year-over-year, all ages combined. June’s end marked the eighth consecutive quarter of expansion for the MIB Life Index and shows the Index climbing back to levels slightly above those observed in Q2 2012. For Q2 2016, the composite Index was up 1.5% year-over-year, somewhat off pace from Q1’s 5.4%. June’s application activity was just slightly off pace (-1.0%) from that of May, exhibiting normal seasonality.
U.S. life insurance application activity across age groups was mixed in June. Ages 0-44 was up 1.6%, ages 45-59 was off -0.6%, and ages 60+ was up 2.3%, year-over-year. At the half year point, application activity for ages 0-44 was up 4.6% YTD, ages 45-59 was up 1.7% YTD, and ages 60+ was up 2.7% YTD compared to the same six months in 2015. For Q2 2016, ages 0-44 was up 2.3%, ages 45-59 was down -0.2%, and ages 60+ was up 1.8% compared to Q2 2015.
Long-term trends by age group as measured by index values (Jan.-Jun. YTD 2016/2012) show a more granular view within the composite MIB Life Index. Ages 0-44 (54% of the composite) was 0.9% higher 2016/2012, ages 45-59 (29% of the composite) was -3.9% lower 2016/2012, and ages 60+ (17% of the composite) was 6.1% higher 2016/2012.
Activity Change Year-Over-Year
June 2016 +1.1%
May 2016 +2.6%
April 2016 +1.0%
March 2016 +4.9%
February 2016 +4.6%
January 2016 +6.4%
Q2 2016 +1.5%
Q1 2016 +5.4%
Q4 2015 +3.2%
YTD 2016 +3.4%
About the MIB Life Index: The MIB Life Index is the life insurance industry’s timeliest measure of application activity in the United States. Released to the media each month, the Index is based on the number of searches MIB life member company underwriters perform on the MIB Checking Service database. Since the vast majority of individually underwritten life premium dollars in North America include an MIB search as a routine underwriting requirement, the MIB Life Index provides a reasonable means to estimate new business activity. For past releases, methodology or to subscribe visit www.mibgroup.com/lifeindex. For more information about MIB, please visit www.mibgroup.com.
