Life insurance - Canada

Canada

The Life insurance market market in Canada is expected to reach a market size (gross written premium) of €30.68bn in 2024.
The average spending per capita in the Life insurance market market is projected to be €0.78k in 2024.
Furthermore, the gross written premium is anticipated to exhibit a compound annual growth rate (CAGR 2024-2029) of 4.67%, resulting in a market volume of €38.54bn by 2029.
In comparison to other countries, the United States is projected to generate the highest gross written premium of €1,195.0bn in 2024.
Canada's life insurance market continues to thrive, driven by strong demand for retirement planning and protection against unexpected events.

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Analyst Opinion

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.

Methodology

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.