Whole life sales drove growth in 2024, but policy sales fell for the fourth year, raising industry concerns
Canadian life insurance new annualized premium reached a record $2.04bn in 2024, reflecting an 8 percent increase from 2023, according to LIMRA’s Retail Canadian Life Insurance Sales Survey.
Despite this growth, the number of policies declined by 5 percent, marking the fourth consecutive year of falling policy sales.
John Carroll, senior vice president and head of Life and Annuities at LIMRA and LOMA, noted that whole life and universal life premiums fueled overall market growth. However, he emphasized the importance of addressing coverage gaps.
Carroll stated, “Record-high whole life and strong universal life new premium propelled overall market growth in 2024.” However, he noted that “the number of policies fell 5 percent in 2024, marking the fourth consecutive year of policy sales declines.”
He also emphasized the need to reach underserved markets, citing that “30 percent of Canadian adults say they live with a coverage gap.”
He also warned that trade uncertainty with the US and the possibility of rising inflation could create challenges in expanding coverage in 2025.
The fourth quarter of 2024 saw a 14 percent increase in new annualized premium, reaching $593.2m. However, policy count dropped 5 percent compared to the fourth quarter of 2023.
Whole life premiums drive record market growth
Whole life new annualized premium climbed 18 percent in Q4, reaching $431.2m. The number of policies sold remained steady compared to Q4 2023.
For the full year, whole life new premium rose 11 percent to $1.41bn, setting a new record. Whole life accounted for 69 percent of the total Canadian life insurance market, while policy count remained unchanged from the previous year.
Matthew Rubino, senior research analyst at LIMRA Insurance Product Research, credited whole life as the driving force behind market expansion.
“Whole life sales drove the overall growth in the Canadian life insurance market this year. Participating whole life product sales led the growth, representing 90 percent of whole life new premium,” he said.
Rubino added that more than half (54 percent) of carriers offering participating whole life products reported double-digit sales growth in 2024.
Universal life sales grow for third straight quarter
Universal life (UL) new annualized premium increased 8 percent year over year, reaching $67.4m in Q4. The number of UL policies sold grew by 6 percent, while non-level cost of insurance (COI) product sales drove growth for both the quarter and the full year.
UL new premium reached $256m in 2024, reflecting a 3 percent increase from 2023. The policy count also rose by 3 percent. UL premiums represented 13 percent of the total Canadian life insurance market in 2024.
Term life rebounds in Q4 but declines for the year
Term life insurance sales recovered in Q4 after a double-digit decline in Q3. New annualized premium increased 2 percent to $94.6m, although the number of policies sold fell by 11 percent in the quarter.
For the full year, term life new premium declined 2 percent to $372.5m, while the number of term life policies sold dropped 10 percent compared to 2023. Term life premiums accounted for 18 percent of the market in 2024.
Rubino attributed the decline in term life sales to fewer purchases of 20-year term and other term products. He noted that “term sales were unusually high in 2023, a result of product innovations and new affiliations among a few carriers.”
While term new premium declined in 2024, he stated it remained 6 percent higher than 2022 levels.
| LIMRA’s Canadian Individual Life Insurance Sales Survey, established in 1993, covers 93 percent of the Canadian life insurance market. The organization conducts over 80 benchmark studies annually, delivering insights into market trends, consumer behaviour, and industry dynamics. |
