By Trevor Thomas
The Sept. 11 terrorist attacks seem to have given Americans a graphic reminder of their own mortality.
There has been a major increase in life insurance applications following the attacks, reports MIB Group, Inc., a Westwood, Mass. company that helps process medical information on consumer applicants for life and health insurance companies.
The MIB life index for October 2001 showed an almost 9% increase in activity over October 2000, and a 26% increase over September 2001. The index, highlighting industry trends in application and underwriting activity, represents over 95% of the premium dollars of individual life insurance written in the U.S. and Canada, MIB says.
MIB only recently began to release data that it collects on life insurance applications submitted for review by 550 major U.S. and Canadian life insurance carriers.
Insurers rely on MIB, known as the Medical Information Bureau, to verify much of the health-related data consumers submit when applying for policies.
MIBs data can give an early indication of trends in life insurance sales. It shows how many applications have recently been submitted, whereas insurers put life insurance sales on their books when policies are approved.
“Until now, trends in industry activity were available only on a significantly delayed basis,” says MIB vice president and chief marketing officer Fran Marinelli. “We realized that the industry could benefit from immediate market information. Since most companies that underwrite individual life insurance policies conduct a search of MIB databases as a routine underwriting requirement, we knew we could provide a monthly snapshot and provide it free of charge to the industry. The number of transactions we see correlates with application activity and policy issuance.”
MIB has tracked trends for internal use for many years, Marinelli notes. New technology makes it possible to gather the data more quickly and make it available to the industry in a convenient format, she explains.
The data in the MIB life index for October 2001 supports anecdotal evidence that U.S. and Canadian insurers have seen a significant increase in applications for life policies in the wake of the terrorist attacks. Over 1.4 million applications were underwritten in October 2001.