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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.