Life insurance - Canada | Statista Market Forecast

The Life insurance market market in Canada is expected to reach a market size (gross written premium) of US$33.08bn in 2024.
The average spending per capita in the Life insurance market market is projected to be US$845.90 in 2024.
Furthermore, the gross written premium is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of 4.45%, resulting in a market volume of US$41.13bn by 2029.
In comparison to other countries, the United States is projected to generate the highest gross written premium of US$1.3tn in 2024.
Canada's life insurance market continues to thrive, driven by strong demand for retirement planning and protection against unexpected events.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past few years, the Life insurance market in Canada has shown a steady growth trajectory, reflecting the evolving needs and preferences of consumers in the country.

Customer preferences: In Canada, customers are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to the growing awareness among consumers about the importance of long-term financial planning and wealth accumulation. As a result, there has been a rise in demand for life insurance policies that provide both protection and investment benefits, such as universal life insurance and whole life insurance.

Trends in the market: One prominent trend in the Canadian life insurance market is the growing popularity of customizable and flexible insurance products. Insurers are now offering more personalized solutions to cater to the diverse needs of customers, such as tailored coverage options, premium payment schedules, and investment choices. This trend reflects a broader global shift towards customer-centric insurance offerings that provide greater value and flexibility.

Local special circumstances: In Canada, the regulatory environment plays a significant role in shaping the life insurance market. Stringent regulations and consumer protection policies ensure that insurers operate ethically and transparently, instilling trust among customers. Additionally, the presence of a well-established insurance distribution network, including brokers, agents, and online platforms, contributes to the accessibility of life insurance products to a wide range of consumers across the country.

Underlying macroeconomic factors: The stable economic conditions in Canada, coupled with a growing middle-class population and increasing disposable income, have bolstered the demand for life insurance products. As consumers seek to safeguard their financial well-being and protect their families against unforeseen circumstances, the life insurance market continues to expand. Moreover, the low interest rate environment has prompted individuals to consider life insurance as a viable investment option for long-term wealth accumulation. In conclusion, the Life insurance market in Canada is witnessing a transformative phase driven by changing customer preferences, innovative product offerings, regulatory oversight, and favorable macroeconomic conditions. These factors collectively contribute to the growth and development of the life insurance industry in the country.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.