Life Insurance Activity Sees First Month Of Decline In 2016

Braintree, MA. (September 14, 2016) — U.S. application activity for individually underwritten life insurance fell slightly in August, off -1.3% year-over-year, all ages combined, according to the MIB Life Index. The year-to-date (YTD) index value remains on par with values observed in 2008 for the same eight month period (last previous high). August’s modest monthly decline is the first in 2016 and comes at summer’s close, typically a slow seasonal period for the Life Index. Year-to-date, the MIB Life Index is up 2.7% August YTD 2016/2015, matching the growth experienced August YTD 2015/2014. Application activity was off -0.7% from that of July, displaying typical seasonality.

U.S. life insurance application activity lost ground across the younger ages, with only the 60+ age group holding ground. Ages 0-44 was off -0.9%, ages 45-59 was off -3.2%, and ages 60+ was flat at 0.3%, year-over-year. Year-to-date August, ages 0-44 remains the leading age group for life insurance applications up 3.7%, ages 45-59 are up 0.9%, and ages 60+ are up 2.4%, compared to the same eight months last year.

Monthly Percent Change Composite Index (year-over-year)
Augl-16	-1.3%
Jul-16	2.0%
Jun-16	1.1%
May-16	2.6%
Apr-16	1.0%
Mar-16	4.9%
Feb-16	4.6%
Jan-16	6.4%

Q2 - 2106	1.5%
Q1 - 2016	5.4%
Q4 - 2015	3.2%
YTD - 2016	2.7%

U.S. Monthly Percent Change vs Prior Month
August	-0.7%

2015-2016	0-44	45-59	60+
Aug - 15	7.0%	3.3%	3.5%
Sep	2.8%	-0.5%	1.2%
Oct	5.6%	0.7%	1.2%
Nov	3.8%	0.2%	3.1%
Dec - 15	4.5%	0.1%	2.0%
Jan	8.4%	4.4%	3.9%
Feb	5.8%	2.9%	3.8%
Mar	6.5%	3.1%	2.9%
Apr	2.6%	-0.8%	-0.6%
May	3.0%	1.1%	3.9%
Jun	1.6%	-0.6%	2.3%
Jul	2.6%	0.4%	2.7%
Aug - 16	-0.9%	-3.2%	0.3%

Note: Effective January 2017, MIB will reset its benchmark comparison (basis=100) for the MIB Life Index from January 2001 to January 2011. The reset to a more current benchmark ensures that the MIB Life Index values are not biased from cumulative and exogenous historical market factors such as industry consolidation, economic shocks and/or regulatory changes occurring since 2001. The adjustment will have no net effect on monthly percent changes and only shift the underlying index values. Read more: http://bit.ly/2c908r5.

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.mib.com/lifeindex.

About MIB
MIB is the life and health insurance industry’s most trusted and secure resource for data-driven risk management services that protect the financial integrity of its members and address their evolving needs. Owned by its members, MIB is uniquely positioned to securely collect and analyze confidential data. MIB services help to detect fraud, errors and omissions on insurance applications; to analyze industry data needed to manage a variety of financial risks; and to make regulatory reporting compliance less onerous and more efficient. As the life insurance industry’s first statistical agent, our MIB Solutions, Inc. subsidiary cost-effectively performs annual data calls for those insurers subject to principles-based reserving. MIB Group, Inc., a membership corporation, provides services through its wholly-owned operating subsidiaries, MIB, Inc. and MIB Solutions, Inc. For more information, visitwww.mibgroup.com.