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February 9, 2011updated 13 Apr 2017 8:50am

US individual life activity still on the decline

Application activity in the US individually underwritten life insurance sector in 2010 did not reflect what market players would like to see an increase Across all age groups, average year-on-year (Y-o-Y) application activity in December 2010 was 1.4% down, which MIB emphasised was less than the 3%-plus annual declines the industry experienced from 2006 to 2008

By LII editorial

Application activity in the US individually underwritten life insurance sector in 2010 did not reflect what market players would like to see – an increase. But on a positive note, activity at least reflected only a modest decline, reveals data from research firm MIB.

Across all age groups, average year-on-year (Y-o-Y) application activity in December 2010 was 1.4% down, which MIB emphasised was less than the 3%-plus annual declines the industry experienced from 2006 to 2008.

However, application activity in December 2009 ended the year on a stronger note than in 2010, recording a 2.3% Y-o-Y increase.

Continuing a now well entrenched trend, in December 2010, Y-O-Y application activity was led by the 60-and-over age group which registered a 9.9% increase.

In the other groups, Y-o-Y application activity in December for ages up to 44 reflected a 4.4% decline, and for ages 45 to 59 a marginal 0.1% decline.

The longer-term picture is also particularly encouraging. MIB noted that the life industry’s emergence from the recession was marked in the final two quarters of 2009 by Y-O-Y increases of 0.3% and 2.9%, respectively, followed by a Y-o-Y increase of 1.3% in the first quarter of 2010.

Thereafter, the recovery faded with Y-o-Y declines in the second, third and fourth quarters of 2010 of 1.8%, 2.6%, and 1.8%, respectively.

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