New premiums in Canada’s life insurance market reached a record high in 2024, according to the latest figures from LIMRA’s retail life insurance sales survey. Total new annualized premiums across the Canadian market reached $2.04 billion, marking an 8% increase compared to 2023.
This data, representing 93% of the Canadian market, was released by Connecticut-based LIMRA. Whole life insurance drove much of this result, with new premiums hitting an all-time high of $1.41 billion, an 11% increase from the previous year. Notably, the number of whole life policies remained flat throughout the year.
Universal life policies also saw strong performance in 2024, with new premiums reaching $256 million, a 3% increase. The number of universal life policies grew by 3% year-over-year. Term life premiums experienced a decrease, falling to $372.5 million, a 2% decline, while the number of term policies sold dropped by 10% year-over-year.
LIMRA noted that the term sales figures in 2023 were unusually elevated due to product innovations and new partnerships among certain insurance providers.
Whole life premiums accounted for a substantial 69% of the total Canadian life insurance market in 2024, according to LIMRA. Universal life held a 13% share, while term life accounted for 18%.
Overall, the number of life insurance policies sold decreased by 5% in 2024, marking the fourth consecutive year of decline.
“With 30% of Canadian adults saying they live with a coverage gap, it is critical for our industry to do more to reach underserved markets,” said John Carroll, senior vice-president and head of life and annuities with LIMRA and LOMA, in the release.
At Advocis’ recent annual symposium, during a session focused on insurance distribution, panelists highlighted the underserved market segments—specifically the “mid-market” and lower income groups—as both a challenge and an opportunity.
“We have to recognize that collectively we are, over time, chasing the higher-net-worth clients,” said Stephen Frank, president and CEO of the Canadian Life and Health Insurance Association. “We’ve got to figure out a solution for that middle tier. There’s a huge opportunity, and they’re the ones who really need the advice.”
Frank added that technology will be a core component of this solution.
