After two consecutive months of decline during the pandemic quarantine, U.S. life insurance application activity jumped 5.2% YOY in May, in what appears to be a V shaped recovery.
This is according to the MIB Life Index. The recovery, using month-over-prior month comparisons, was even more impressive -- February/March was off -6.7%, March/April off was -5.5%, and April/May bounced back an unprecedented 1.5% in a time period historically off -5.0% or more, as the summer months approach.
On a YOY basis, the May 2020 index was up 5.2%, with two less business days than in the 2019 comparative period. Year-to-date, the composite MIB Life Index is a percent higher than last month, up 1.6% at the end of May, according to the Index.
May’s Life Index age groups showed strength in the younger and middle ages, the Index noted. Ages 0-44 gained 7.1%, ages 45-59 gained 6.9%, ages 60+ were off -1.9% YOY. Year-to-date, ages 0-44 are up 3.4%, ages 45-59 are up 0.5%, and ages 60+, while down -1.6% YTD, remain ~10% higher than pre-2019 numbers.
As carriers and agents adjust to the new normal and society returns, we remain cautious about identifying any trends, given the impact of the
COVID-19 exogenous event, according to the Index.
Looking at month-over-prior month (MOM) gain/loss (April 2020/May 2020), application activity ages 60+ showed the greatest recovery from COVID-19 declines. up 4.4%, ages 45-59 gained 1.2%, and ages 0-44 gained 0.6% MOM.