Young Consumers Continue to Submit More Life Applications: MIB

Many life insurers have tried to shift to more use of digital application submission and processing systems, and some have made more use of automated or semi-automated underwriting procedures.

Some life insurers have tightened underwriting standards for applicants believed to be at relatively high risk of contracting the virus that causes COVID-19.

The Other Two Age Groups

Perhaps as a result of the underwriting procedure and rule changes, application activity levels for consumers in the 45-59 and 60-and-older age groups have followed different paths.

In January and February, the MIB activity index for consumers ages 60 and older looked the strongest. Application activity was up 3.4% for that age group in January, and up 6.4% in February.

Starting in March, when the COVID-19 changes swept in, application activity for consumers ages 60 and older has been down every month. In April, for example, activity for consumers ages 60 and older was 9.7% lower than in April 2019.

Consumers in the middle, 45-59 age group looked worse than any other age group in January and February: Their application activity increased just 0.1%, year-over-year, in January, and 2.6% in February.

Since March, however, consumers in the 45-59 age group have been in the middle in terms of application activity every month.

— Read Michael Fosbury to Lead MIB, on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook, LinkedIn and Twitter.