Number of life insurance policies sold declines in third quarter

Total Canadian life insurance new annualized premiums totaled $478-million in the third quarter of 2024, even as the number of policies sold dropped 17 per cent, led by term life sales declines.

The figures from LIMRA also show year-to-date new annualized premium reaching $1.5-billion, a five per cent increase over 2023 figures. In the first nine months of 2024, policy count also dropped five per cent when compared to 2023.

They say strong economic conditions have propelled permanent life insurance sales, while term life sales fell.

“Both participating whole life and universal life recorded substantive gains as consumers look to protect investment growth,” John Carroll, senior vice president and head of life and annuities with LIMRA and LOMA said in a statement about the sales survey which represents 93 per cent of the Canadian market. “LIMRA is projecting this trend to continue.” 

Whole life premiums 

Whole life premiums climbed nine per cent in the third quarter while the number of policies sold dropped one per cent. “Eight in 10 whole life carriers reported new premium growth. Year-to-date, whole life new premiums rose nine per cent to $984-million, and the number of policies sold was level with prior year’s results. Year-to-date, whole life premium represented 68 per cent of the total Canadian life insurance market.” 

Universal life premiums also improved, growing seven per cent to $63-million, as non-level cost of insurance products sales drove growth. Policies sold increased by two per cent in the third quarter. Year-to-date premiums were one per cent higher than the previous year’s results, reaching $189-million. Universal life sales made up 13 per cent of the Canadian market in the first three quarters of 2024.

Term life premiums 

Finally, term life new premiums fell 11 per cent in the third quarter to $91-million as the number of policies sold plummeted 27 per cent. Year-to-date new premium was also down three per cent to $278-million. Policy count dropped 10 per cent in the first nine months of 2024. They say 19 per cent of the full market share was held by term life products, year-to-date.

All that said, overall, Matthew Rubino, senior research analyst, LIMRA insurance product research points out that “while new policy count fell 27 per cent, year-over-year, it was more than three per cent higher than third quarter 2022 results.”