MIB Life Index

Canadian Life Insurance Application Activity Declines in March but Finishes Q1-2023 at Growth

Q1-2023 shows growth for ages 31-70 and double-digit growth Universal Life

April 6, 2023

Canadian life insurance application activity declined by -1.9% in March Year-over-Year (YOY), while finishing Q1-2023 up +2.3% on a Year-to-Date (YTD) basis. Additionally, activity for Q1-2023 was up +9.6% compared to the previous quarter (Q4-2022), representing the highest Quarter-Over-Quarter growth since Q4-2016. When examining Month-Over-Month (MOM), activity, March 2023 was flat at +0.3% compared to February 2023.

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Ages 31-50 saw YOY flat activity in March 2023, while all other age bands saw declines. When comparing Q1-2023 to Q1-2022, ages 31-70 saw growth, ages 0-30 saw flat activity, and ages 71+ saw declining activity. It is interesting to note that Q1-2023 saw growth across all age groups compared with Q4-2022, with double-digit growth for ages 51-70. Also worthy of note is the fluctuating patterns in growth trends across age bands experienced over the last 4 quarters, especially for ages 0-30 and 51-60.

March 2023 saw YOY growth for face amounts over $1M, in the double digits for face amounts over $5M, flat activity for face amounts over $500K up to and including $1M and declines for face amounts up to and including $500K. When comparing Q1-2023 to Q1-2022, face amounts over $500K saw growth, in the double digits for amounts over $1M. Amounts over $250K up to and including $500K saw flat activity and amounts up to and including $250K saw declines.

When including age bands comparing Q1-2023 to Q1-2022, ages 0-30 saw double-digit growth for face amounts over $2.5M, flat activity for amounts up to and including $250K and declines for all other face amounts, in the double digits for amounts over $500K up to and including $2.5M. Age 31-50 saw growth for amounts over $500K, in the double digits for amounts over $1M, and declines for all other face amounts. Ages 51-60 saw growth for amounts over $250K up to and including $500K, double-digit growth for amounts over $500K up to and including $2.5M as well as amounts over $5M, and declines for all other face amount. Ages 61-70 saw declines for amounts up to and including $250K and growth for all other face amounts, in the double digits for amounts over $250K up to and including $1M and amounts over $5M. Ages 71+ saw growth for amounts over $250K up to and including $2.5M, in the double digits for amounts over $250K up to and including $1M, and declines for all other face amounts, in the double digits for amounts over $2.5M up to and including $5M.

For March 2023, Universal Life saw flat activity YOY at +1.3%, while Whole Life saw declines of -4.3% and Term Life saw double-digit declines of -22.7%. When comparing Q1-2023 to Q1-2022, Universal Life saw double-digit growth of 14.5%, Whole Life saw flat activity at -1.3%, and Term Life saw double-digit declines of -18.7%. When including age bands in our comparison of Q1-2023 activity to Q1-2022, Universal Life saw growth for ages 0-70, in the double digits for ages 31-60 while ages 71+ saw double-digit declines. Whole Life saw growth for ages 31-60, and declines for all other age bands. Term Life saw declines across all age bands, in the double digits for ages 0-70.

About 34% of total Life Index volume for Canada in Q1-2023 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. When looking solely at submissions identified as Life Insurance products, Canadian life insurance application activity declined in March 2023 by -12.2% YOY and was down -7.3% for Q1-2023 over Q1-2022.

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