Growth Slows but Continues in U.S. Life Insurance Activity Reports the MIB Life Index

Younger applicants continue to drive growth

Braintree, MA. (December 9, 2020) — U.S. life insurance application activity continues to grow at a steady pace with Year-to-Date (YTD) activity up +4.1%, according to the November MIB Life Index. Year-over-year (YOY) growth continued but slowed to +1.6% in November. While this is the smallest YOY gain since June, it continues a positive YOY growth trend for 2020 that started in May. On a monthly basis, November grew over October by +5.0%, the second largest Month-Over-Month (MOM) gain since the pandemic.

Life Index ChartContinuing a trend we have seen since the pandemic started, YOY growth was largely driven by younger applicants with submissions in the 0-44 age group at +3.5% and the 45-59 age group at +2.4%. In contrast, the 60 and over age group continues on a downward trend with submissions at -5.0% YOY.
Life Index Chart








November's YOY growth for ages 0-30 was driven by an increase in submissions of 7% for face amounts of $250,000-$2.5M. Declines continued (-20% or more) for age groups 61+ with submissions of face amount of $1M-$2.5M and also face amounts at or above $5M+.

November vs. October MOM submits showed significant swings by product lines with double-digit growth in activity for Term Life for the 31-70 age group and double digit declines for permanent products for ages 51+. Term products have also continued to impact YTD numbers with declines (-4.5%) driving overall downward trends in the 60+ age group (-1.9%).

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Monthly Percent Change
Composite Index
(year-over-year)

Nov-20 1.6%
Oct-20 7.6%
Sep-20 4.4%
Aug-20 9.1%
Jul-20 14.1%
Jun-20 1.2%
May-20 5.2%
Apr-20 -3.0%
Mar-20 -2.2%
Feb-20 5.6%
Jan-20 2.5%
   
YTD - 2020
Annual - 2019
4.1%
0.7%
   
Q3 - 2020 9.2%
Q2 - 2020 1.0%
Q1 - 2020 1.8%
Q4 - 2019 1.3%
Q3 - 2019 -0.3%
% Change
Age Groups
(year-over-year)




0-44



45-59



60+
Nov - 20
3.5%
2.4%
-5.0%
Oct - 20
11.5%
8.3%
-3.0%
Sep - 20
7.2%
4.6%
-2.5%
Aug - 20
12.4%
10.1%
-0.3%
Jul - 20
18.9%
12.9%
4.0%
Jun - 20
3.7%
1.3%
-5.5%
May - 20
7.1%
6.9%
-1.9%
Apr - 20
-0.7%
-2.4%
-9.7%
Mar - 20
0.3%
-4.2%
-6.2%
Feb - 20
7.0%
2.6%
6.4%
Jan - 20
3.4%
0.1%
3.4%
 
 
 
 
YTD 2020
7.4%
3.7%
-1.9%
   

U.S. Monthly Percent
Change
vs Prior Month


November

5.0%
 

 



Monthly Percent Change
Composite Index
(year-over-year)

Nov-20 1.6%
Oct-20 7.6%
Sep-20 4.4%
Aug-20 9.1%
Jul-20 14.1%
Jun-20 1.2%
May-20 5.2%
Apr-20 -3.0%
Mar-20 -2.2%
Feb-20 5.6%
Jan-20 2.5%
   
YTD - 2020
4.1%
Annual - 2019
0.7%
   
Q3-2020
9.2%
Q2-2020
1.0%
Q1-2020
1.8%
Q4-2019
1.3%
Q3-2019
-0.3%



U.S. Monthly Percent
Change
vs Prior Month


November

5.0%


% Change
Age Groups
(year-over-year)




0-44



45-59



60+
Nov-20
3.5%
2.4%
-5.0%
Oct-20
11.5%
8.3%
-3.0%
Sep-20
7.2%
4.6%
-2.5%
Aug-20
12.4%
10.1%
-0.3%
Jul-20
18.9%
12.9%
4.0%
Jun-20
3.7%
1.3%
-5.5%
May-20
7.1%
6.9%
-1.9%
Apr-20
-0.7%
-2.4%
-9.7%
Mar-20
0.3%
-4.2%
-6.2%
Feb-20
7.0%
2.6%
6.4%
Jan-20
3.4%
0.1%
3.4%
 
 
 
 
YTD 2020
7.0%
3.8%
-1.6%




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