Steady Growth Kicks off 2021 for U.S. Life Insurance Activity Reports the January MIB Life Index

Ages 31-50 drive growth while 61+ declines YOY

February 5, 2021

U.S. life insurance application activity continues to grow at a steady pace as we enter 2021, with YOY activity up +3.9%, according to the January MIB Life Index. Growth was largely driven by the 31-50 age group at +8.5% while older age groups age 61+ declined YOY.

U.S. Report ChartGrowth in January YOY was seen across all age bands up to and including age 60. Specifically, age 31-50 lead growth at +8.5%, 0-30 grew by +3.7%, and 51-60 by +2.9%. Ages 61+ saw declines in January YOY with age 61-70 at -1.8% and age 71+ at -10.9% over January, 2020 transaction volumes.

U.S. Report Chart








Composite YOY growth in January was largely driven by face amounts up to and including $2.5M and over $5M. When looking at age bands, results were mixed. Activity for younger age groups ages 0-50 increased YOY across all face amounts up to and inlcuding $5M. Double digit declines were seen in face amounts over $5M for both ages 0-30 and those age 61+. Additionally, older applicants age 71+ saw double digit declines in all face amounts above $250K as compared to January, 2020.

Among those ages 0-60, YOY growth focused on Term and Universal Life products with Whole Life activity remaining relatively flat. Age 31-50 saw double-digit growth YOY of +10.2% for Term and +16.2% for Universal Life. In contrast, ages 71+ saw declines across all product types with Universal Life declines of -6.8%, Term of -4.0% and Whole Life of -3.8% YOY.

On a monthly basis, January 2021 activity was relatively flat compared to December 2020 at +1.69%. Of note, January saw increased activity over December among older age groups with ages 61-70 up 5.6% and age 71+ up 9.8% MOM.

To view the entire archive of historical reports, visit us at: www.mibsolutions.com/regLI.

Methodology Change for 2021:
MIB has changed the way we report trends in application activity. Effective immediately, variations with industry activity reflect a straight period over period percent changes (YTD, YOY, MOM, and QOQ) based on calendar days vs. the prior methodology based on a 2011 baseline index on a business day calculation.

 


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

Jan-21 3.9%
Dec-20 8.5%
Nov-20 1.3%
Oct-20 2.6%
Sep-20 9.6%
Aug-20 3.8%
   
YTD - 2021
3.9%
YTD - 2020
1.1%
   
Q4 - 2020 4.0%
Q3 - 2020 9.0%
Q2 - 2020 0.8%
Q1 - 2020 1.8%
  Monthly % Change
Age Groups
(year-over-year)


0-30

31-50

51-60

61-70

71+
Jan - 21
3.7%
8.5%
2.9%
-1.8%
-10.9%
Dec - 20
1.8%
13.3%
9.3%
8.6%
-0.4%
Nov - 20
0.7%
4.0%
0.9%
-0.7%
-14.1%
Oct - 20
4.4%
6.8%
0.5%
-3.4%
-14.8%
Sep - 20
11.1%
12.5%
7.9%
6.0%
-2.4%
Aug - 20
3.3%
8.8%
2.4%
-1.5%
-10.4%
 
 
 
 
   
YTD 2021
3.7%
8.5%
2.9%
-1.8%
-10.9%
   

U.S. Monthly Percent
Change vs Prior Month


January

1.7%
 

 



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

Jan-21 3.9%
Dec-20 8.5%
Nov-20 1.3%
Oct-20 2.6%
Sep-20 9.6%
Aug-20 3.8%
   
YTD - 2021
3.9%
YTD - 2020
1.1%
   
Q4-2020
4.0%
Q3-2020
9.0%
Q2-2020
0.8
Q1-2020
1.8%



U.S. Monthly Percent
Change
vs Prior Month


January

1.7%


  Monthly % Change
Age Groups
(year-over-year)


0-30

31-50

51-60

61-70

71+
Jan-21
3.7%
8.5%
2.9%
-1.8%
-10.9%
Dec-20
1.8%
13.5%
9.3%
8.6%
-0.4%
Nov-20
0.7%
4.0%
0.9%
-0.7%
-14.1%
Oct-
20
4.4%
6.8%
0.5%
-3.4%
-14.8%
Sep-20
11.1%
12.5%
7.9%
6.0%
-2.4%
Aug-20
3.3%
8.8%
2.4%
-1.5%
-10.4%
 
 
 
 
 
 
YTD 2021
3.7%
8.5%
2.9%
-1.8%
-10.9%




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