U.S. Life Insurance Activity Shows Steady Recovery from Q1 2017 Shortfall Reports the MIB Life Index

BRAINTREE, Mass., Jan. 16, 2018 /PRNewswire/ -- Slowing life insurance application activity in mid-2016, turned sharper in Q1 2017, off -4.5%; the composite MIB Life Index saw quarterly improvement in subsequent quarters finishing 2017 at -1.8% YTD. The Life Index lost ground monthly in all but the final two months of 2017, demonstrating an upward trend heading into 2018. November and December were up 1.2% and 1.0%, respectively year-over-year. Additional support was evidenced by the December/November percent change, off -4.8% — a significantly shallower decline than seasonal norms. In relative terms, the 2017 year-end index value (99.58) is 1.6% higher than levels seen in 2013 (98.03) and .42% lower than par value (100) reset in 2011.¹ 

Younger life insurance applicants (ages 0-44) drove the MIB Life Index in 2017 with both Q3 and Q4 activity up 0.2% and 1.6%, respectively. Application activity in ages 0-44 rose in the last five months of 2017 with November and December up 2.3% and 1.2%, respectively year-over-year.  Year-to-date, this demographic finished 2017 off slightly at -0.7%.  In 2017, the proportion of ages 0-44 applications vs. the total of all MIB Life Index applications grew by .62%, and now represent 55.2% of the MIB Life Index. The top 60 MIB life insurers (by volume) had a 3.0% gain in ages 0-44 application activity over the past two years (2017/2015).  The 45-59 age group had the greatest shortfall off -4.0% YTD, with monthly declines in all but December, up slightly at 0.6%, year-over-year.  Ages 45-59 also declined in total applications by -.63%, now representing 27.0% of the MIB Life Index. Life insurance applicants ages 60+ finished the year off -1.7% YTD, receiving a boost in the final two months of the year, pushing Q4 gains that were close to par value (0.2%).  November and December were up 0.9% and 1.3%, respectively year-over-year.  Ages 60+ as a percent of total applications stayed level at 17.8% of the MIB Life Index. Login to see the MIB Life Index Annual Report for a full analysis of 2017.

"The year-over-year increase in monthly application activity for younger age buyers in the second half of 2017 is validating the industry's investment in innovative marketing, product design, underwriting and online channels to reach this key segment of the underserved market," said Lee Oliphant, MIB Group's Chief Executive Officer. "We remain cautiously optimistic that the positive growth seen in the fourth quarter of 2017 will continue as we head into 2018."  

Download the 2017 MIB Life Index Annual Report at no charge by registering at the Enhanced Life Index Portal: www.mibsolutions.com/regLI. Watch the MIB Life Index "At the Half" video by visiting: http://wi.st/2agvX62. Our "2017 Year-in-Review" video with MIB CEO Lee Oliphant is anticipated in early February.

Monthly Percent Change
Composite Index
(year-over-year)
Dec-17	1.0%
Nov-17	1.2%
Oct-17	-0.2%
Sep-17	-0.6%
Aug-17	-1.5%
Jul-17	-2.6%
Jun-17	-2.6%
YTD - 2017	-1.8%
YTD - 2016	1.3%
Q4-2017	0.6%
Q3-2017	-1.6%
Q2-2017	-1.8%
Q1-2017	-4.5%

Note: Effective January 2017, MIB has 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 over 90% of life insurance applications 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.mibgroup.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, visit www.mibgroup.com.

Contact: David O. Aronson, MIB Group, Inc., 781-751-6330, [email protected]       

¹ The MIB Life Index baseline index value was reset to 100 in 2011. See http://bit.ly/2c908r5 for full details.

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SOURCE MIB Group, Inc.