U.S. Life Insurance Application Activity Finishes Q1 at Growth
Q1-2023 shows growth across all face amounts and product types
U.S. life insurance application activity grew in March 2023 with Year-over-Year (YOY) activity up +3.3% and ending Q1-2023 up +4.9% over Q1-2022 (YTD). Additionally, activity for Q1-2023 was up +11.2% compared to the previous quarter (Q4-2022), representing the highest Q1 increase over Q4 seen in the last 10 years, and the first time any quarter has experienced double-digit growth compared to the prior quarter since Q4-2019. When comparing Q1-2023 to the same quarter in prior years, activity was flat at -0.9% compared to 2021, up +9.1% compared to 2020, and up +11.0% compared to 2019.
Activity for ages 0-50 showed YOY growth for March 2023. Ages 51-60 and 71+ saw flat activity, while ages 61-70 saw declines in March. When comparing Q1-2023 to Q1-2022, ages 0-50 and 71+ saw growth, while ages 51-70 saw flat activity. This represents a significant shift from age band trends in 2023 where ages 71+ consistently led in growth while ages 0-50 declined. On a quarterly basis, Q1-2023 saw growth compared to Q4-2022 across all age bands, in the double digits for ages 0-30 and 61+.
March 2023 saw YOY growth across all face amounts above $250K, in the double digits for face amounts over $1M, and flat activity for amounts up to and including $250K. When comparing Q1-2023 to Q1-2022, all face amounts saw growth, in the double digits for face amounts over $1M up to and including $5M.
When including age bands comparing Q1-2023 to Q1-2022, ages 0-30 saw growth for all face amounts, in the double digits for amounts up to and including $5M. Ages 31-50 saw growth for all face amounts as well, in the double digits for amounts over $1M. Ages 51-60 saw declines for amounts up to and including $250K, growth for amounts over $250K up to and including $500K, flat activity for amounts over $500K up to and including $1M, double-digit growth for amounts over $1M up to and including $5M, and declines for amounts over $5M. Ages 61-70 saw flat activity for amounts up to and including $250K, growth for amounts over $250K up to and including $500K, declines for amounts over $500K up to and including $1M, flat activity for amounts over $1M up to and including $2.5M, and growth for amounts over $2.5M. Ages 71+ saw growth for face amounts up to and including $250K, flat activity for amounts over $250K up to and including $500K, declines for amounts over $500K up to and including $1M, double-digit declines for amounts over $1M up to and including $2.5M, double-digit growth for amounts over $2.5M up to and including $5M, and declines for amounts over $5M.
All product types experienced YOY growth in March 2023, with Universal Life showing double-digit growth for the third consecutive month. Additionally, all product types experienced YOY growth when comparing Q1-2023 to Q1-2022. Universal Life saw double-digit growth of +14.7%, Term Life up +5.4%, and Whole Life up +3.2%, representing the first quarter Whole Life has seen YOY growth since Q4-2021. When comparing Q1-2023 application activity to Q4-2022, all product types experienced growth, in the double-digits for Universal Life and Whole Life.
When including age bands and comparing Q1-2023 to Q1-2022, Universal Life saw double-digit growth across all age bands. Term Life saw double-digit growth for ages 0-30, growth for ages 31-50, flat activity for ages 51-60, declining activity for ages 61-70, and double-digit declines for ages 71+. Whole Life saw double-digit growth for ages 0-30, growth for ages 31-50, declines for ages 51-70, and flat activity for ages 71+.
Originally posted at MIB Blog
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