Life Index Inches Forward For A 2nd Month

Braintree, MA. (August 8, 2018) — U.S. life insurance application activity grew slightly in June up 0.7% year-over-year, according to the MIB Life Index. Predominantly led by gains in ages 60+ application activity, the Life Index is slowly emerging to positive territory with July's composite index flat at -0.2% YTD. Overall, the modest improvement seen in the second quarter struggles ahead in the slow summer period.  July application activity was off -1.6% from that of the prior June continuing a common trend. Relatively speaking, the industry is doing far better in July 2018/2017 YTD (-0.2%) than it did in the same seven month period in 2017/2016 YTD (-3.1%).

July's U.S. application activity showed gains in two out of three age groups—ages 45-59 up 2.1%, and ages 60+ up 4.8%, year-over-year. While the first half 2018 trends are leaning toward the positive for these age groups, ages 0-44, off -1.2% in July, appears to be wavering from past trends. After solidly leading all others in 2017, ages 0-44 converged with other age groups in Q1 2018 and appear to be lagging mid-year. This group contains the all-important Millennial and Gen-X purchasers; however, summer is notoriously slow for life insurance sales.