(Westwood, Mass. � November 27, 2006) North American application activity for individually underwritten life insurance declined -4.1% in October year-over-year, the eighth straight month where 2006 activity was below that of 2005, according to the MIB Life Index.. Year-to-date (YTD), U.S. and Canadian application activity is off -3.2%, compared to the same ten months in 2005.
U.S. application activity declined -3.3% in October year-over-year, all ages combined. Application volume declined in the 0-44 and 45-59 age groups off -5.1% and -1.2%, respectively while ages 60+ increased +2.0% versus October 2005.
For the first time in five years, October�s monthly figures showed a decline from this past September (-1.4%). Previously, this time period has shown increases of between +0.2% and +1.5%, including 2005�s increase of +1.0%.
Canadian application activity declined -9.2% in October all ages combined. This was the largest year-over-year decline seen for any month since November 2003�s drop of -11.0% versus November 2002. Declines were observed across all three age groups: 0-44 off -8.7%, 45-59 off -11.3% and ages 60+ off -6.3% versus October 2005. YTD, Canadian application activity is running -2.4% behind 2005 through ten months. 2005�s YTD activity versus Jan. – Nov. applications 2004 was virtually identical at -2.3%.
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About the MIB Life Index
The MIB Life Index is the life insurance industry’s timeliest measure of application activity across the U.S. Released to the media each month, the Index is based on the number of searches 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.
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