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Life Index FAQs
What is the MIB Life Index?
The MIB Life Index provides a monthly snapshot of the underwriting activity for the North American life insurance industry. It is based upon the number of searches member company underwriters perform on the MIB Checking database (MIB Checks), a highly standardized, ubiquitous procedure. Given that MIB member companies underwrite over 95% of the premium dollars of all individually underwritten life insurance policies issued in the U.S. and Canada, the Index is an extremely robust measure. Released to the media in the second week of every month, the MIB Life Index is the life insurance industry's timeliest measure of underwriting activity.
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How do I read or interpret an Index?
An index is a tool that simplifies the measurement of movements in a numerical series. The MIB Life Index uses January 2001 as a base reference where the Index is equal to 100. All Life Index references use this baseline benchmark. For example, an index of 110 denotes a 10-percent increase in volume from the reference period; similarly an index of 90 means a 10-percent decline in activity. Movements of the index from one date to another can be expressed as changes in index points (simply, the difference between index levels), but it is more meaningful to express fluctuations in percent changes.
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What data is measured by the MIB Life Index?
The Life Index reports on individually underwritten life insurance application activity in the U.S. and Canada as well as fully consolidated North American results. It is additionally broken down into three age demographics including 0-44, 45-59, 60+ age groups. Five-year age segments are available on a customized basis.
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How accurately does the MIB Life Index characterize the marketplace?
As an indicator of industry trends, the Life Index tracks very close to other insurance associations´ survey data of policies placed on the books. However, the Life Index measures policy application volumes, which inherently lead issued business by roughly three months.
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How is the MIB Life Index used?
The MIB Life Index is used by insurance companies and financial analysts as a leading indicator of life insurance application activity. An MIB Check is generally performed at the earliest point in underwriting making this measure a leading indicator regarding potential new business volume. While it is recognized that policy application and policy issue are two different variables, there is an established correlation, which makes the Life Index a useful relative activity measure and a reasonable means to estimate new business activity.
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What companies are included in the MIB Life Index?
The Life Index uses application inquiries from all 500 member companies (except those that are known non-life companies).
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I know MIB's market is life, health, disability income, critical illness, and long-term care insurers. Is the Life Index a pure play?
The Life Index is comprised of all MIB Checks specifically marked for life insurance applications as well as any unmarked database checks.
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When is it available?
The MIB Life Index is publicly available by the end of the second week of every month.
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Who creates it?
MIB Solutions' Actuarial and Statistical Research Group. Producing statistical analytics is their core competency leveraging decades of experience accumulated from compiling industry studies for MIB member companies and clients like the Society of Actuaries.
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Can I get the MIB Life Index monthly release delivered to my desktop?
Yes, you may subscribe to this service by emailing marketing@mib.com and include your company name, full name, title and email address.
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