Individual life insurance sales increased by 17 per cent in the first quarter of 2021 compared with Q1 2020, according to LIMRA's most recent report on sales in this market in Canada.
Expressed in terms of annualized premiums, individual life insurance sales totalled $423 million in Q1 2021.
In the first quarter of 2020, sales climbed to $361 million and then declined in the following two quarters before resuming growth in the final quarter. In the highlights of its report, LIMRA notes that whole life insurance propelled growth in the first quarter of 2021.
The 2021 first quarter report mentions that 13 of 17 participating insurers reported overall individual life insurance sales growth. By comparison, 12 of 16 participants reported growth in whole life sales.
Nearly two-thirds of the whole life market
In the first quarter of 2021, whole life sales increased by 29 per cent versus Q1 2020. Term insurance sales edged 1 per cent downward between these two periods. Universal life sales increased by 5 percent over the same comparison period.
Whole life sales accounted for 64 per cent of total sales in the first quarter of 2021 in terms of annualized premiums. Term life insurance generated 24 per cent of total sales during this period, compared with 12 per cent for universal life.
LIMRA's report states that 178,505 policies were sold in the first quarter of 2021: Term life insurance made up a 58 per cent share, whole life insurance 28 per cent, and universal life insurance 14 per cent.
Exclusive agents in decline
The independent MGA and securities broker (national accounts) distribution channels saw strong sales growth in terms of annualized premiums in the first quarter of 2021, yet the career channel experienced a decline.
A comparison by major distribution groups shows that the affiliated channel accounted for 15 per cent of sales in terms of annualized premiums in the first quarter of 2021, and the independent channel captured 85 per cent.
