(Westwood, Mass. � June 11, 2003) May applications for life insurance in North America declined 10.8% on a year-over-year basis; the tenth such decline in the last twelve months. U.S. application activity was off 12.2% from May 2002, marking the lowest Index value for the month of May since 1999. Canadian activity levels remained flat, declining slightly at 0.3% compared to activity for the same period last year.
According to May’s MIB Life IndexSM, the sharp decline in U.S. life insurance applications negatively impacted all age grouping with the steepest year-over-year declines observed in the 0-44 age group (-14%) and the 45-59 age group (-9.9%). In ages 60+, a traditional bright spot for U.S. activity, year-over-year declines for the last two consecutive months find this age demographic giving back all 2003 year-to-date gains. Canadian application growth is up 5.5% in May for the 45+ age groups compared to last year.
“Examining recent trends in the MIB Life Index suggests a declining forecast for June,” states Stacy J. Gill, Vice President and Chief Knowledge Officer at the MIB Group’s e-Services Corporation. “June’s application activity has consistently lagged the prior June’s activity levels for the last four years running. If historical norms are observed, it’s reasonable to expect a 4-5% year-over-year decline next month,” states Gill.
The MIB Life Index
The MIB Life Index is released in summary form to the media each month, providing the earliest snapshot of the industry free of charge.
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About MIB Group, Inc.
MIB Group, Inc., headquartered in Westwood, Massachusetts, is the leading provider of database and information management tools to the global risk management community, and is a leading facilitator of electronic insurance commerce via dedicated networks and Internet-based systems. MIB member companies underwrite more than 95 percent of the premium dollars of individual life insurance written in the United States and Canada. More information about MIB Group, Inc. is available at www.mib.com