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 according to the latest MIB Life Index report, released March 8.
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+.
The MIB Life Index report, issued monthly, provides insights into trends in application activity for individually underwritten life insurance.
Application activity for these reports is based on inquiries to the MIB Checking Service performed by member company underwriters. Since the MIB Checking Service is used to underwrite the vast majority of individually underwritten life insurance policies in the U.S. (estimated as high as 90%), MIB has a unique ability to estimate application activity and provide the industry with insights into trends over time.
