For the first time in three years, all companies participating in the LIMRA Retail Canadian Life Insurance Sales Survey reported positive gains in total premium. These companies represent 93 per cent of the Canadian market.
Furthermore, LIMRA says awareness about the need for life insurance remains high: “Almost one in three Canadian adults, representing 8.4-million adults, say they need or need more life insurance coverage,” they state in the September 24 note, Canadian Life Insurance New Premium Leaps 10% in Second Quarter 2024.
“Total Canadian life insurance new annualized premium was $522-million in the second quarter of 2024, up 10 per cent,” they add. “Year-to-date new annualized premium totalled $972-million, increasing six per cent from prior year. In the first half of 2024, policy count rose two per cent, compared with results from the first half of 2023.” In the second quarter of 2024, policy count numbers increased four per cent.
Whole life premium growth
Broken down, they say whole life new annualized premium topped $358-million, up 13 per cent in the second quarter. Whole life new premium growth was almost entirely based on growth in participating product lines, they state. “In the first half of 2024, whole life premium represented 68 per cent of the total Canadian life insurance market.”
Universal life new premium was $67-million, following three consecutive quarters of declining premium. Policy count figures increased seven per cent, year-to-date. Finally, term life new premium increased three per cent in the second quarter to $98-million. The number of term life policies sold during the quarter was also up two per cent. “Term premium held 19 per cent market share, year-to-date,” they conclude.
