U.S. life insurance activity flat in May

U.S. life insurance application activity was flat in May 2022 compared to May 2021, with Year-over-Year results at -1.4% and reflecting the first month in 2022 with YOY activity better than -2%, MIB Life Index reported. When comparing May 2022 activity to the same month in prior years, activity was flat at +0.5% vs 2020 and down -3.9% vs 2019. On a Year-to-Date  basis, activity through May 2022 was down -6.1% compared to May 2021. When taking a historical lookback, May 2022 YTD growth was up +2.1% compared to May 2020 and flat at +1.6% compared to May 2019.

Growth was concentrated on ages 71+ which saw double-digit gains of +10.1%, while other age groups saw flat activity or declines. Ages 0-30 was down -2.6%, ages 31-50 flat at -1.4%, ages 51-60 down -2.8% and ages 61-70 flat at -1.8%. Ages 71+ is also the only age band at growth YTD.

Face amounts up to and including $250K and amounts over $1M up to and including $2.5M saw YOY growth, amounts over $2.5M up to and including $5M saw YOY declines, while all other face amounts saw flat activity.

When examining YOY activity by age bands, ages 0-30 saw flat activity for amounts up to and including $250K and growth for all other face amounts, in the double digits for amounts over $1M up to and including $5M. Ages 31-50 saw YOY growth for amounts up to and including $250K and amounts over $5M, while all other face amounts saw flat activity. Ages 51-60 saw flat YOY activity for amounts up to and including $500K, growth for amounts over $1M up to and including $2.5M, and declines for all other face amounts. Ages 61-70 saw YOY growth for amounts up to and including $250K, declines for amounts over $250K up to and including $5M, in the double digits for amounts over $500K up to and including $1M and amounts over $2.5M up to and including $5M, and flat activity for amounts over $5M. Ages 71+ saw double-digit YOY growth for face amounts up to and including $250K, and declines for all other categories, in the double digits for amounts over $2.5M.

May 2022 saw flat activity for Term Life at -0.6% and Universal Life at -0.1%, while Whole Life saw a decline of -9.3%. All product types saw growth for ages 71+. Activity for Term Life showed flat activity for ages 0-50 and declining activity for ages 51-70, Universal Life saw flat activity for ages 0-60 and declining activity for ages 31-70, and Whole Life saw declining activity for ages 0-70, in the double digits for ages 0-30.