MIB Life Index

Canadian Life Insurance Activity Continues to Decline YOY in August, Reports the MIB Life Index

YTD activity slows but continues at growth

September 17, 2021

Canadian life insurance application activity dropped -6.7% Year-over-Year (YOY) in August 2021 compared to August 2020, representing the second month in a row with YOY declines. However, on a Year-to-Date (YTD) basis growth slowed but remained positive for Canada at +2.8%. Additionally, August activity grew slightly at +2.1% when compared with July 2021, representing the first Month-over-Month (MOM) growth since March.

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All age groups experienced declines in August YOY with ages 51-70 declining in the double digits for the second month in a row. Ages 0-30 dropped by -3.3%, ages 31-50 by -6.7%, ages 51-60 by -11.2%, ages 61-70 by -10.1% and ages 71+ by -4.5%. YTD, ages 0-50 and 71+ were at growth while ages 51-70 declined.

August saw YOY double-digit declines in application activity for face amounts up to and including $500K, and growth for all other face amounts, in the double digits for amounts over $1M.

When examining age bands, ages 0-30 saw declines for face amounts up to and including $500K and growth for all other face amounts. Declines were in double digits for amounts up to $250K, while growth was in double digits for amounts over $500K up to and including $2.5M and in triple digits for amounts over $5M. Ages 31-50 saw double digit declines for face amounts up to and including $500K, flat activity for amounts over $500K up to and including $1M and double-digit growth for face amounts over $1M. Age 51-60 saw double-digit declines for face amounts up to and including $500K and growth for all other face amounts, in the double digits for amounts over $1M. Age 61-70 saw declines for face amounts up to and including $1M, in the double digits for amounts up to and including $500K, and double-digit growth for all other face amounts. Age 71+ saw double digit declines for face amounts up to and including $500K with triple digit growth for face amounts over $2.5M up to and including $5M and double-digit growth in all other categories.

When examining activity patterns where a product type was submitted to MIB, Universal Life leads with significant double-digit growth YOY in August, continuing a pattern we have seen throughout 2021. In contrast, both Term and Whole Life experienced declines in August YOY, in the double digits for Term Life. In a continuing trend, the younger age bands are driving this growth in Universal Life with those ages 0-30 in triple digit growth YOY and ages 31-50 at significant double-digit growth (>75%) and ages 51-60 also at double digit growth. Ages 61-70 saw flat activity for Universal Life while ages 71+ was the only age group to decline. Term Life saw declines across all age bands, in the double digits for ages 0-70 and Whole Life saw growth for ages 0-30 but declines for all other ages.

About 34% of total Life Index volume for Canada in August 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 -7.8% YOY for Canada in August 2021 and up +5.2% 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.

Monthly percent changeMonthly Percent Change Age

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

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