WINDSOR, Conn., March 16, 2022—Following the remarkable growth in 2021 (25%), total Canadian life insurance new annualized premium increased 1% in 2022, according to LIMRA’s Retail Canadian Life Insurance Sales Survey.
“Inflation and challenging economic conditions dampened Canadian life insurance sales growth in 2022,” said Matthew Rubino, research analyst, LIMRA Insurance Research. “That said, 2022 sales exceeded pre-pandemic levels. New annualized premium in 2022 was 23% higher than in 2019, suggesting sales are returning to a more predictable pattern as the disruptions from the pandemic have passed.”
Fourth quarter new annualized premium fell 2%, compared with fourth quarter 2021 results. Year-over year policy count dropped 8% for the quarter and 8% for the year.
Whole life new annualized premium increased 1% in the fourth quarter with more than half of carriers reporting positive sales growth. In 2022, whole life premium grew 2%, compared with 2021 results. In 2022, whole life premium represented 65% of the total Canadian life insurance market.
After three consecutive quarters of growth, universal life (UL) new premium dropped 7% in the fourth quarter, compared with the 45% growth experienced in fourth quarter 2021. For the year, UL new premium remained 9% above 2021 results, driven by non-level cost of insurance product sales. UL premium held 15% of the total Canadian life insurance market in 2022.
Term sales dropped for the fifth consecutive quarter. Term new annualized fell 10% in the fourth quarter, resulting in an 8% decline for the year. Term premium held 20% market share in 2022.
“Term sales were elevated in 2020 and 2021 because they were easier to sell when pandemic restrictions were in place making face-to-face selling nearly impossible,” said Rubino. “Sales of these products normalized in 2022 and are in line with results experienced in 2019.”
LIMRA’s Canadian Retail Individual Life Insurance Sales Survey represents approximately 93% of the premium market. To view the latest data table with U.S. life insurance sales trends visit LIMRA’s Fact Tank.
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