Canadian life insurance market new annualized premium grew 10% to C$522 mn ($387 mn) in Q2 2024 compared to the same period last year, according to LIMRA. Policy count also increased 4%.
It was a strong quarter, with all product lines showing growth in both premium and policy count. Notably, all participating companies saw gains in total premium for the first time in three years
John Carroll, senior vice president of life and annuities at LIMRA and LOMA
New research from LIMRA indicated that nearly one-third of Canadians, or 8.4 mn adults, feel they need more life insurance coverage. With inflation slowing, more Canadians may be open to buying life insurance.
Year-to-date new annualized premium reached C$972 mn, a 6% increase from 2023 levels. Policy count for the first half of the year also grew 2%.
Whole Life Insurance in Canada
Whole life insurance new annualized premiums reached $358 mn, up 13% in the second quarter. The number of policies sold rose by 2%. Eight out of ten carriers saw new premium growth. Year to date, whole life new premium climbed 8% to $659 mn, with a 1% increase in policies sold. In the first half of 2024, whole life premiums made up 68% of the total Canadian life insurance market.
The growth in whole life premiums during the first half of the year largely came from participating whole life product lines
Matthew Rubino, senior research analyst at LIMRA Insurance Product Research
These products attract more consumer interest because they offer dividends that policyholders can use for additional coverage or cash value growth.
Participating products accounted for about 60% of total new premiums in our latest survey, driving the overall growth in the Canadian life insurance market.
Canadian Life Insurance Sales Results
| Product | Change Premiums | Face Amount | Number of Policies | Market Share |
|---|---|---|---|---|
| Universal Life | ||||
| Second Quarter 2024 | 4% | 3% | 7% | 13% |
| Year-to-date | -1% | ++ | 3% | 13% |
| Term | ||||
| Second Quarter 2024 | 3% | 5% | 4% | 19% |
| Year-to-date | 2% | 4% | 2% | 19% |
| Whole Life | ||||
| Second Quarter 2024 | 13% | -1% | 2% | 68% |
| Year-to-date | 8% | -1% | 1% | 68% |
| Total | ||||
| Second Quarter 2024 | 10% | 4% | 4% | 100% |
| Year-to-date | 6% | 2% | 2% | 100% |
Life insurance can be a vital tool for financial planning, but finding coverage that meets your goals and budget can be challenging without guidance.
7 simple steps will help you focus on the essential aspects of buying a policy that fits your needs:
- Verify what you need life insurance coverage
- How much life insurance coverage you need?
- What type of life insurance for your financial needs?
- Research life insurance programs from different insurers and compare insurance quotes
- Find the best life insurance coverage and decide on your financial goals
- Add any riders to the life insurance policy
- Choose and inform your beneficiaries about your life insurance policy
Each comes with potential pros and cons, as well as a wide range of premiums.
Purchasing life insurance may seem complicated if you have never done it before. There are many different types of life insurance policies (see Most Common Life Insurance Myths).
Universal Life Insurance in Canada
After three quarters of declines, universal life (UL) premiums hit $67 mn, a 4% increase over last year’s results. Policy counts rose by 7%. Year to date, UL premiums totaled $125 mn, 1% lower than the same period in 2023.
Weak sales of non-level cost insurance products have slowed overall growth. However, policy counts increased by 3% compared to last year. UL premiums accounted for 13% of the total Canadian life insurance market in the first half of 2024.
Term Life Insurance in Canada
Term life premiums grew by 3% in the second quarter, reaching $98 mn. This marked the second straight quarter of growth. Year to date, term life premiums totaled $187 mn.
Both new premiums and policy counts rose by 2% in the first half of the year. Term premiums represented 19% of the market share YTD.
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AUTHORS: John Carroll – senior vice president of life and annuities at LIMRA and LOMA, Matthew Rubino – LIMRA’s senior research analyst for insurance products at LIMRA
