MIB Life Index Shows Slowdown In Younger Applicants

Braintree, MA. (December 9, 2016) — Application activity for individually underwritten life insurance fell -3.3% in November, year over year, according to the MIB Life Index.

November’s decline shaved nearly a half percentage point off the 2016 year-to-date. Through eleven months, the MIB Life Index is up 1.4% YTD compared to the same eleven month period in 2015. Contributing to the decline was the comparative Index value for November 2015, being near an all-time high for November historically. The MIB Life Index has risen steadily since June 2014, and following eight consecutive quarters of expansion turned negative for the first time in August. Month-over-month November applications were up 7.1% from October, showing strong year-end sales activity; however, off pace from the 9.7% month-over-month increase recorded in 2015.

U.S. life insurance application activity declined across all three age groups in November. The 0-44 age group was off -4.0%, ages 45-59 was off -3.3%, and ages 60+ was off -0.9%, year-over-year. Year-to-date, older age life insurance applications are starting to eclipse YTD gains in the younger ages. Ages 0-44 are up 1.9%, ages 45-59 are flat at 0%, and ages 60+ are up 1.8%, compared to the same eleven month period last year.

Monthly Percent Change Composite Index (year-over-year) Nov-16 -3.3% Oct-16 -0.9% Sep-16 -2.3% Aug-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% Q3 - 2106 -0.6% Q2 - 2016 1.5% Q1 - 2016 5.4% YTD - 2016 1.4%   U.S. Monthly Percent Change vs Prior Month Nov. 7.1%

2015-2016 0-44 45-59 60+ Nov - 15 3.8% 0.2% 3.1% Dec 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 -0.9% -3.2% 0.3% Sep -2.6% -2.8% -0.7% Oct -1.6% -1.2% 1.7% Nov - 16 -4.0% -3.3% 0.9% 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.