Critical illness insurance sales slipped by 3 per cent in 2021 compared with 2020 in terms of new annualized premiums, says LIMRA's Canadian Critical Illness Sales and In Force report for Q44 2021. CI premiums totalled $130.6 million in 2021.
LIMRA's report adds that the number of policies stagnated in 2021, at 112,290. Analyst Matthew Rubino notes that eight of the 15 participants in LIMRA's survey reported a decline in premiums.
In the fourth quarter of 2021, new annualized CI premiums were flat compared with Q4 2020. The report does not provide fourth quarter policy sales data.
Marked downturn in permanent insurance
Despite 1 per cent premium sales growth in the fourth quarter of 2021, sales of the permanent CI product sank by 12 per cent at the end of 2021.
Despite a decline in the fourth quarter of 2021 compared with Q4 2020, sales of limited period level CI garnered the largest share of premiums in 2021. At $67.1 million, LPL sales drew 51 per cent of total 2021 premiums.
Premium sales of the permanent CI product were $36.8 million, or 28 per cent of total premiums for 2021.
Renewable term products were $26.8 million in 2021, or 21 per cent of total premiums sold in 2021.
With 47,735 policies sold, renewable term CI insurance made up the largest proportion of the total number of policies in 2021, at 43 per cent. LPL CI insurance follows with 47,340 policies, or 42 per cent of the 2021 total, and permanent CI lags behind with 17,215 policies, or 15 per cent of the 2021 total.
Independents fare better
In terms of premiums, the independent channel (independent advisors, MGAs, and national accounts) saw sales edge downward 2 per cent in 2021, compared with 2020. In 2021, 51 per cent of this network’s sales were driven by LPL CI.
The affiliated channel (multi-line and career agents) sustained a 5 per cent decline in premium sales. In 2021, 54 per cent of this network’s sales were in the term CI niche.
