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WINDSOR, Conn., Sept. 24, 2024 — Total Canadian life insurance new annualized premium was $522 million (CAD) in the second quarter 2024, up 10%, according to LIMRA’s Retail Canadian Life Insurance Sales Survey. In the second quarter, policy count increased 4%.

“It was a strong quarter with all product lines recording premium and policy count growth. Remarkably, for the first time in three years, all participating companies reported positive gains in total premium,” said John Carroll, senior vice president and head of Life & Annuities, LIMRA and LOMA. “New LIMRA research shows the need for life insurance remains high. Almost 1 in 3 Canadian adults, representing 8.4 million adults, say they need or need more life insurance coverage. With inflation easing in Canada, consumers may be more open to purchasing the life insurance they know they need, providing a great opportunity for the industry.”

Year-to-date, new annualized premium totaled $972 million, increasing 6% from prior year. In the first half of 2024, policy count rose 2%, compared with results from the first half of 2023.

Whole Life
Whole life new annualized premium topped $358 million, jumping 13% in the second quarter. The number of whole life policies sold increased 2%. Eight in 10 whole life carriers reported new premium growth. Year to date, whole life new premium rose 8% to $659 million and the number of policies sold increased 1%. In the first half of 2024, whole life premium represented 68% of the total Canadian life insurance market.

“The whole life new premium growth in the first half of the year was almost entirely based on growth in the participating whole life product lines,” said Matthew Rubino, senior research analyst, LIMRA Insurance Product Research. “Participating whole life products generally attract higher consumer interest because they offer dividends for policyholders that can be used for additional coverage or cash value growth. These products accounted for about 60% of total new premium in our latest survey, driving overall growth in the Canadian life insurance market.”

Universal Life
After three consecutive quarters of declines, universal life (UL) new premium was $67 million, 4% higher than prior year’s results. Policy count increased 7%. YTD, UL new premium totaled $125 million, remaining 1% below the same period in 2023. Weak non-level cost of insurance product sales have diminished overall UL sales growth. YTD, policy count increased 3% higher than prior year results. UL premium held 13% of the total Canadian life insurance market in the first half of 2024.

Term Life
Term new premium increased 3% in the second quarter to $98 million, marking the second consecutive quarter of growth sales.  Term new premium topped $187 million YTD. Both new premium and policy count both rose 2% in the first half of the year. Term premium held 19% market share YTD.

Started in 1993, LIMRA’s Canadian Individual Life Insurance Sales Survey represents 93% of the Canadian market. For more details on the sales results, go to Second Quarter 2024 Canadian Individual Life Insurance Sales in LIMRA’s Fact Tank.

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