U.S. Life Insurance Activity Stumbles In March, MIB Reports

From Staff Reports

U.S. life insurance application activity slowed down in March, largely because young people did not buy.

Overall activity fell 4.9% year over year, according to the MIB Life Index. The severity of the decline is largely attributable to the March 2018 comparative period being so good -- up 6.7%, MIB explained.

For the first quarter 2019, the MIB Life Index is off 1% versus Q1 2018.

"Once again, the shift has been away from younger age buyers, with the life insurance application activity in age 60+ predominating, despite its percent change decline from January highs," MIB said.

Younger age activity accounts for 53% of the total Life Index, speaking to first quarter declines. March activity for the composite Index was up slightly (0.8%) from that of February.

In the age groups, March year-over-year application activity is as follows: ages 0-44, down 9.1%; ages 45-59, down 4.5%; and ages 60+ up 7.6%. At the end of Q1 2019, activity ages 0-44 was down 6.1%; ages 45-59 was up 0.5%; and ages 60+ was up 12.6%.

"Application activity ages 60+ are showing their first double-digit quarterly growth in nearly a decade," MIB reported.

Owned by members, MIB Group provides life and health insurance companies with data-driven risk management services, as well as other data services to support the industry.