U.S. life insurance claims activity ends year with solid growth, reports MIB Life Index

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2021 has started strong with growth in the first four months, including the strongest annual growth for the months of February, March and April on record. The months of May and June were marked by a stagnation in activity, followed by a decline in July. August through November saw growth or steady activity, while December ended the year on a decline. Note that the year-over-year declines in July and December can be attributed to record activity during those months in 2020.

Activity for all ages showed year-on-year growth for 2021, with the strongest growth coming from the 31-50 and 71+ age brackets. Full year activity for 0-30 year olds up +2.2%, 31-50 year olds up +4.5%, 51-60 year olds up +3.1%, 61-70 year olds years up +2.3% and 71+ years up +4.1%. This growth pattern contrasts with 2020 where 31-50 year olds lead in year-on-year growth, but the 71+ age group saw declines. Throughout the year, we have seen several changes in trends by age group. However, beginning in April, the 71+ age bracket began to overtake the youngest age bracket and, with the exception of September, posted the highest year-on-year gain in all age groups for the rest of the year.

Growth in 2021 was driven by increased activity on nominal amounts up to and including $250,000 and more $500,000. In a continuing trend that began last year, we saw the strongest growth in larger face amounts. When looking at age bands, annual YOY activity for ages 0-30 showed growth for amounts insured up to and including $5 million, two digits for higher fonts $1 million up to and including $2.5M. 31-50 year olds saw year-over-year growth for amounts up to and including $250,000 and more $500,000, two digits for higher fonts $5 million. Those aged 51-60 experienced annual growth for all amounts, double digits for amounts above $5 million. The age group 61 to 70 has shown annual growth in amounts insured up to and including $250,000 and more $1 million, two digits for amounts greater than $2.5M. People aged 71 and over saw year-on-year growth for amounts up to and including $250,000 and more $500,000 up to and including $5 million, two digits for amounts greater than $2.5M up to and including $5 million, but activity down by double digits for the amounts $5 million.

When looking at product types, 2021 saw year-over-year growth for Universal and Whole Life of +3.0% and +8.3% respectively. Annual term life insurance application activity for the year remained relatively stable at -0.1%. Growth patterns were consistent across all age groups, with growth percentages highest for whole life, followed by universal life, and stable or declining for term life. .

We also looked at activity by gender and found that the annual growth in application activity for men slightly exceeded that for women. Looking at trends in amounts insured by gender, we found a significant difference in the activity of women compared to men for policies on $1 million. Women experienced double-digit annual growth for all amounts insured on $1 million, with growth for amounts greater than $5 million greater than +35%. Men, on the other hand, recorded stable activity for policies on $5 million and single-digit growth for fonts $1 million up to and including $5 million.

For more detailed information, read the full MIB Life Index 2021 annual report, available at www.mibgroup.com.

Composite index of monthly percentage change

(Year after year)

December 21

-5.9%

Nov-21

2.9%

21st of October

-1.5%

Sep 21

3.7%

21st of August

5.5%

21-July

-5.8%

June 21st

0.5%

May 21

1.9%

April 21th

10.7%

March 21st

18.5%

the 21st of February

7.3%

Jan-21

3.9%



YTD-2021

3.4%

YTD-2020

3.9%



Q4-2021

-1.5%

Q3-2021

1.0%

Q2-2021

4.3%

Q1-2021

10.1%

% monthly change
age groups

(Year after year)


0-30

31-50

51-60

61-70

71+

December 21

-4.6%

-5.5%

-7.6%

-9.2%

-0.4%

Nov-21

2.5%

3.2%

1.7%

0.8%

12.0%

21st of October

-1.6%

-0.5%

-3.2%

-5.1%

4.8%

Sep 21

1.0%

7.5%

1.8%

-1.8%

6.3%

21st of August

0.6%

8.5%

6.0%

3.0%

9.0%

21-July

-8.5%

-5.1%

-4.8%

-5.2%

-3.3%

June 21st

-3.3%

1.1%

0.8%

3.6%

4.3%

May 21

-1.3%

2.6%

1.9%

4.1%

5.2%

April 21th

15.4%

6.1%

10.4%

15.0%

20.4%

March 21st

18.5%

17.8%

20.4%

20.6%

13.2%

the 21st of February

5.1%

11.0%

8.4%

4.3%

-6.2%

Jan-21

3.7%

8.5%

2.9%

-1.8%

-10.9%







Year-to-date 2021

2.2%

4.5%

3.1%

2.3%

4.1%

Monthly percentage change in the United States compared to the previous month

December

-11.7%

Change in methodology for 2021:
MIB has changed the way we report application activity trends. Beginning with our January report, variations with industry activity reflect a straight period over period percent change (YTD, YOY, MOM and QOQ) based on calendar days compared to the previous methodology based on a 2011 benchmark on a business day calculation.

About the MIB Life Index
The MIB Life Index is the most current measure of claims activity in the life insurance industry in United States. Published monthly, the report is based on the number of searches performed by life insurers of MIB member companies on the MIB Audit Service.SM database. Given that more than 95% of life insurance applications in North America include a MIB search, as a routine underwriting requirement, the MIB Life Index provides a reasonable means of estimating new business activity. For previous versions, methodology or to subscribe, visit www.mibgroup.com.

About the MIB
MIB Group Holdings, Inc. is the insurance industry’s most trusted and secure partner for data, information and digital solutions that support underwriting and actuarial decision-making and improve industry efficiency. With close ties to member life insurance companies and a single focus on improving the insurance industry, the MIB is uniquely positioned to provide data-driven solutions that address common challenges in the industry and enable customers to gain efficiency, manage risk and grow profitably. MIB Group Holdings, Inc. provides services through its wholly owned operating subsidiaries, MIB, LLC, MIB Services, LLC and MIB Solutions, LLC. For more information visit www.mibgroup.com

Media inquiries:
Betty Jean Lane
MIB Group, Inc.
781.751.6135
[email protected]

SOURCE MIB Group Holdings, Inc.

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