The Canadian life industry sold a lot of product in 2024 – so much so that it set new records for LIMRA researchers who have tracked Canadian sales since 1993.
According to the LIMRA Canadian Individual Life Insurance Sales Survey, which represents 93 per cent of the Canadian life insurance market, new annualized premium jumped eight per cent in 2024 when sales are compared to 2023 figures. Total Canadian life insurance new annualized premium reached a record high $2.04-billion during the year, propelled largely by whole life sales.
Despite the record high premiums, the number of policies sold actually fell five per cent during the year, the fourth consecutive year of policy sales declines.
Whole life new premium rises
Broken down, whole life new premium also set a new record, rising 11 per cent to $1.41-billion, while the number of policies sold remained flat. Universal life new premium totalled $256-million, a three per cent jump over 2023 sales. The number of policies sold also grew three per cent. Term life premium, meanwhile, dropped two per cent to $372.5-million with the number of term life policies sold down 10 per cent when compared to 2023.
Whole life, according to LIMRA, represents 69 per cent of the Canadian market overall, universal life held 13 per cent of the total Canadian life insurance market in 2024 and term life sales held an 18 per cent market share.
Trade relationship with the U.S
“With 30 per cent of Canadian adults saying they live with a coverage gap, it is critical for our industry to do more to reach underserved markets,” John Carroll, senior vice president and head of life and annuities with LIMRA and LOMA said in a statement about the new sales figures. “The uncertainty of the trade relationship with the U.S. and the potential for increased inflation could make reaching these markets more challenging in 2025,” he warns.
In the fourth quarter of 2024 only, new annualized premium totalled $593.2-million. Whole life new annualized premium topped $431.2-million, an 18 per cent jump over results posted in the fourth quarter of 2023. The number of policies sold in the fourth quarter was flat. Universal life new premium was $67.4-million, while the number of policies sold rose six per cent and term life sales totalled $94.6-million, a two per cent jump over figures from the fourth quarter of 2023. The number of term life policies sold dropped 11 per cent during the quarter.
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