(Westwood, Mass. – March 2, 2007) North American application activity for individually underwritten life insurance declined -7.4% in January year-over-year, according to the MIB Life Index™. Applications were off -3.3% when compared to December 2006. Historically, January activity has lagged that of the previous December in five of the last six years.
U.S. application activity declined -6.9% in January year-over-year, all ages combined. Applications were off across all three age groups: ages 0-44 down -7.6%, ages 45-59 down
-5.9%, and ages 60+ down -5.7% compared to the same period last year. Applications by age group versus last month’s activity (Dec. 2006) show more mild decreases: ages 0-44 down – 3.7%, ages 45-59 and 60+ down slightly at -0.8% and -0.5%, respectively.
Canadian application activity declined -11.2% in January year-over-year, all ages combined. This was the largest January decline since the Index’s inception in 2001. Declines
across all three age groups were more pronounced in Canada: ages 0-44 down -12.7%, ages 45-59 down -8.2%, and ages 60+ down -10.2% compared to the same period last year.
|Monthly Percent Change vs. 2007|
|January ’07 vs. Jan. ’06||-6.9%||-11.2%||-7.4%|
|December ’06 vs. Dec. ’05||-2.7%||-8.3%||-3.4%|
|Monthly Percent Change vs. Previous Month|
NOTE: The methodology for determining application activity by country has been modified effective January 2007. From this point forward, U.S. and Canadian activity is based on the location of the insurance carrier’s underwriting operation versus prior methodology which used “Territory Code” (an indicator of the location of the applicant) as reported by the MIB member company. All comparative figures used to calculate the MIB Life Index have been restated to assure data consistency. Visit www.mib.com/lifeindex for more details.
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.
MIB is the life and health insurance industry’s most trusted resource for risk information and analytical services. Owned by the industry it has served for more than a century, MIB is uniquely positioned to aggregate industry insights in order to develop products and services for our members that improve their risk management decisions. MIB, Inc. and MIB Solutions, Inc. are wholly-owned subsidiaries of the MIB Group, Inc. Visit www.mib.com.Tags: Capgemini, Efma, InsurTech, World Insurance Report