New premiums for life insurance hit record high in 2024, while number of policies fell

New premiums hit a record high last year in Canada’s life insurance market, based on statistics from LIMRA’s retail life insurance sales survey.

Total new annualized premiums of Canadian life insurance were $2.04 billion in 2024, up 8% from 2023, according to the survey, which represents 93% of the Canadian market, Connecticut-based LIMRA said in a release.

Whole life drove the result, with record-high new premiums of $1.41 billion, up 11% from 2023, although policy count was flat for the year.

Universal life new premiums were also strong in 2024, at $256 million (up 3%) and the number of universal life policies grew 3% year over year.

Term new premiums fell to $372.5 million (down 2%), and the number of term policies sold was down 10% year over year. (LIMRA noted that term sales were unusually high in 2023, because of product innovation and new affiliations among a few carriers).

Whole life premiums represented 69% of the total Canadian life insurance market in 2024, LIMRA said. Universal life accounted for 13% and term accounted for 18%.

Overall, the number of policies fell 5% in 2024, marking the fourth consecutive year of policy sale declines, LIMRA said.

“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 on insurance distribution, panelists said the underserved market — the “mid-market” and lower — represents both a challenge and 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.” Technology will be part of the solution, he said.

Michelle Schriver

Michelle is a senior reporter for Advisor.ca and sister publication Investment Executive. She has worked with the team since 2015 and been recognized by the National Magazine Awards and SABEW for her reporting. Email her at michelle@newcom.ca.