Life insurance policy sales have been declining for fifteen years. This phenomenon is not irreversible, provided the industry re-evaluates its practices and innovates, noted four panelists gathered November 18 in Montreal for the Congrès de l'assurance de personnes (Life and Health insurance Congress), organized by the Insurance Journal Publishing Group.
While 734,000 policies were sold in 2010, only 635,000 were purchased in 2024. A small consolation is that individual insurance sales grew by 1 to 2% in 2025. But this is not enough to reverse the overall downward trend.
Logically, the need for individual insurance should follow Canadian population growth. However, this is not the case.
Also, between 2010 and 2025, the country gained nearly eight million inhabitants. As a result, the rate of life insurance policy sales per 1,000 inhabitants fell from 22 in 2010 to 16 fifteen years later.
Operational barriers or lack of financial literacy?
“It’s not inevitable,” says Annie Veillette, a leader in business development and talent management in the financial sector, during the panel entitled How to Shape the Future of Life Insurance Distribution? “Needs have increased and are more complex: debt has never been higher, house prices have risen, and the product remains as relevant as ever,” she adds.
“The problem is that the industry ecosystem has changed significantly over the past twenty years, particularly in terms of regulation, compliance, and administration,” adds Veillette. “These are operational barriers that have an impact and that insurance companies can address to support their advisors.”
“The middle class is no longer as attracted to buying insurance because it has become complicated,” says Valérie Le Roux, Vice-President of Product and Partnerships for Humania Assurance.
Adrien Legault, President of the Board of Directors of the Canadian Association of Independent Life Brokerage Agencies (CAILBA), counters that the issue isn't one of responsibility and compliance, particularly because technological advancements allow advisors to handle a greater number of cases each day.
Legault, who is also Quebec region Vice President and General Manager for IDC Worldsource Insurance Network Inc., says that the policy sales shortfall is partly attributable to lower financial literacy among the population. "For clients to be interested in insurance products, they need to have the desire to be insured," he summarizes.
Félix Deschâtelets, President and CEO and co-founder of Emma, shares this view. "When we look at countries with growing economies, we see that the rate of financial literacy and investment is higher, and therefore, the level of protection is also higher," he notes.
A clash of generations is expected
Canadians are living longer, yet life insurance sales are declining, observes Serge Therrien, President and Publisher of Insurance Journal Publishing Group. How can this paradox be explained?
According to Félix Deschâtelets, many members of Generations X, Y, and Z don't feel the need to insure themselves or their families for their future, convinced they will inherit from their parents.
He considers this, however, to be a serious mistake. “If someone dies accidentally before their parents, the resulting financial gap will have to be filled: debts and mortgages will need to be paid, not to mention those who want to pay for their children's education.”
The rising cost of living could also erode these potential inheritances. “In some cases, people's savings will be used to meet their basic needs,” says Valérie Le Roux. “I'm not sure future generations should expect to receive anything.”
Modernizing systems
Modern and agile technological solutions could help pull the life insurance industry out of its slump.
“If we optimize advisors’ work, we can maximize their contribution to society, which is to discuss and advise clients,” says Félix Deschâtelets.
Unfortunately, some insurers still impose an outdated system, which forces agents to work on multiple platforms and increases the time allocated to each case, says Adrien Legault.
“If I have to switch platforms for each client and it takes me 25 to 30 minutes each time, I’ll process far fewer transactions after a month,” explains Legault.
To increase efficiency, Annie Veillette offers standardized forms that can be sent to more than one insurer for a similar request.
Supporting the next generation
Advisors, more than insurers, will revolutionize the industry, the panelists predict.
“Advisors are eager for technology; they use it extensively,” says Adrien Legault. “They are the ones on the ground. That’s where the future of the industry lies. So, if an advisor comes up with an idea that’s truly innovative, it might be worth listening to them.”
Being open to innovation is certainly important, but so is better welcoming the next generation, especially with the decline of career agencies, adds Annie Veillette. “Some firms are looking for successors, but we need to rethink how we support them,” she says. “Firms must become incubators with a talent management structure. If a young person doesn’t see any career advancement opportunities, they’ll leave.”
“The new generation wants work-life balance,” observes Félix Deschâtelets. “Selling 400 policies a year requires sacrifice. Find me 1,000 young people who will take a risk in business, working for a $100 commission, mostly evenings and weekends, to end up with a salary between $60,000 and $70,000, if all goes well…” Young brokers are ready to roll up their sleeves. But they need guidance, he says.
“When you look at successful advisors with thirty or forty years of experience, the climb to reach their level seems insurmountable for us at the beginning of our careers,” he adds. “That’s why early-career mentoring makes all the difference. Young people don’t want the highest salary on day one; they want to be shown the way to advance their careers.”
