MIB Life Index

Canadian Life Insurance Activity Continues Double Digit Declines YOY in October, Reports the MIB Life Index

YTD activity remains flat

November 10, 2021

Canadian life insurance application activity showed a double-digit decline at -12.5% Year-over-Year (YOY) in October 2021 compared to October 2020, representing the fourth consecutive month with YOY declines. On a Year-to-Date (YTD) basis, the industry remained flat at -0.6% for Canada. Additionally, October 2021 activity declined slightly at -1.9% when comparing Month-Over-Month (MOM) to September.

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For the fourth month in a row, October saw a decline in Year-Over-Year (YOY) activity across all age bands, with ages 31+ showing double-digit declines. Ages 0-30 dropped by -9.6%, ages 31-50 by -11.9%, ages 51-60 by -15.6%, ages 61-70 by -17.8% and ages 71+ by -15.1%. On a YTD bases, ages 0-50 and 71+ remained relatively flat while ages 51-70 declined.

October saw YOY double-digit declines in application activity for face amounts up to and including $500K, flat activity for face amounts over $500K up to and including $1M and growth for face amount over $1M, in the double digits for face amount over $1M up to and including $2.5M.

When examining age bands, ages 0-30 saw double-digit YOY declines for face amounts up to and including $500K, and double-digit growth for face amounts over $500K up to and including $2.5M, as well as over $5M. Ages 31-50 saw YOY declines for face amounts up to and including $1M, in the double digits for amounts up to and including $500K, and growth for amounts over $1M, in the double digits for face amounts over $1M up to and including $2.5M as well as amount over $5M. Age 51-60 saw double-digit YOY declines for face amounts up to and including $1M and amounts over $5M, and growth for all other face amounts, in the double digits for amounts over $2.5M up to and including $5M. Age 61-70 saw double-digit YOY declines for all face amounts up to and including $2.5M, double digits growth for amount over $2.5M up to and including $5M, and declines for amount over $5M. Age 71+ saw YOY declines or flat activity for amounts up to and including $5M, including double-digit declines for face amounts up to and including $250K, over $500K up to and including $1M, and over $2.5M up to and including $5M. Age 71+ also saw significant double-digit YOY growth (over 95%) for face amount over $5M.

When examining activity patterns where a product type was submitted to MIB, all product types declined YOY in October, in the double digits for Term and Universal life, reversing a trend in double-digit growth for Universal Life that has been observed in all previous months of 2021. When examining age bands, age 0-30 declined YOY for all product types, in the double digits for Term Life while ages 31-70 declined in the double digits across all product types. Ages 71+ experienced YOY growth for Term Life and double-digit declines for Universal Life and Whole Life. On a YTD basis, Whole Life activity is at growth, Universal Life at double-digit growth, and Term Life experienced declines.

About 36% of total Life Index volume for Canada in October did not include a product type. We believe the vast majority of these submissions are for Life Insurance applications and have included them in the composite analysis presented in this report. Missing product type information has a significant impact on Canadian analysis. Growth varies when looking solely at submissions identified as for Life Insurance products, with activity down -14.1% YOY for Canada in October 2021 and flat at +1.0% YTD.

NOTE: Due to frequent missing information regarding the applicant's country of residence, effective January 2021 we are now identifying Canadian activity based on the company country.

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Contact: Betty-Jean Lane, MIB Group, Inc., 781-751-6135, BLane@mib.com 

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