Life Insurance Activity Turns Positive In March
Braintree, MA.—U.S. life insurance application activity turned positive in March up 6.7%1 year-over-year, according to the MIB Life Index. The Index declined in the first two months of 2018, but March activity put the first quarter on par with where it stood Q1 2017 (0.0% YTD), and off -4.5% from its most recent first quarter high point in 2016. March application activity was 6.4% higher than activity in February. March results are tempered by one less business day based on the Good Friday holiday in March 2018, which fell in April in the 2017 comparative period. The impact makes March values somewhat inflated, which will adjust back in April. Adjusted percent changes for March 2018 appear in the footnote.
March was the first month in 2018 where U.S. life insurance application activity rose across all age groups. Application activity ages 0-44 was up 6.8%, activity ages 45-59 was up 6.4%, and activity ages 60+ was up 7.0%. Year-to-date, application activity ages 0-44 age group was up 0.5%, activity ages 45-59 was off -1.1%, and activity ages 60+ was flat at 0.3%.
MIB’s CEO comments on the 2017 industry in our MIB Life Index Year-in-Review video (http://wi.st/2CejeJq). Download the 2017 MIB Life Index Annual Report at no charge by registering at the Enhanced Life Index Portal: www.mibsolutions.com/regLI or login at https://portal.mibsolutions.com/welcome.
1NOTE: The adjustments in percent changes in this press release account for the fact that March 2018 had two fewer business days than the prior year, one of which was a rare event where the 2018 Good Friday holiday fell in March instead of April. Since total volumes are divided by business days to calculate the index, non-adjusted numbers March 2018 appear artificially high. On that basis, one business day was added back to calculate the adjusted numbers.
The adjusted MIB Life Index percent changes for March 2018/March 2017: Composite, 1.9%; 0-44, 2.0%; 45-59, 1.6%; 60+, 2.2%. March 2018 / February 2018 adjusted percent change was 1.6%. Adjusted Q1 2018/Q1 2017: Composite, -1.6%; 0-44, -1.1%; 45-59, -2.7%; 60+, -1.3%.
| 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 visit www.mib.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.
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