Braintree, MA. (July 19, 2017) —U.S. individually underwritten life insurance activity declined
-2.6% in June year-over-year, closing out a second quarter that showed improvement over Q1 losses, according to the MIB Life Index. The composite index has lost ground in every month of 2017; softening of year-over-year application activity first surfaced in the third quarter of 2016. At the close of the second quarter, the MIB Life Index is off -3.2% YTD. 2017 YTD declines basically erased gains achieved in the first two quarters of 2016, and gave back roughly one third of the total gains recorded in the 2015-2016 expansionary period. In relative terms, the Q2 2017 YTD Life Index value (99.96) is now on par with index values seen in Q2 2015 (99.78). June’s application activity was -1.6% off the pace from May 2017 levels, but consistent with seasonal norms. 2017 year-over-year declines should be tempered against the all-time high index values posted in the comparative six months of 2016.
U.S. life insurance application activity declined across all three age groups in June with the 45-59 group showing the largest losses at -5.0%, year-over-year. In June, ages 0-44 was off the least at -0.9% and ages 60+ was off -4.1%, as compared to same month last year. For the second quarter, application activity ages 0-44 were down –0.4%, ages 45-59 were down -4.6%, and ages 60+ were down -2.1%. Year-to-date, application activity ages 0-44 are down –2.3%, ages 45-59 are down -5.5%, and ages 60+ are down -2.1%. Application activity ages 45-59 continue to account for the lion’s share of 2017 declines.
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