The latest statistics released by the Canadian Life and Health Insurance Association (CLHIA) show a growing industry, including year-over-year premium growth, led by annuities and life insurance, followed by health insurance.
Total premiums rose to $122 billion in 2019, up from $117 billion the previous year, CLHIA reported in its annual industry facts document published on Tuesday. (These amounts included $3.5 billion and $3.2 billion in revenues from foreign affiliates operating in Canada, respectively.)
The highest year-on-year increase in premiums was recorded for segregated fund annuities (an increase of 5.2%) and life insurance (an increase of 5.1%), followed by health insurance (an increase of 4.1%).
In the previous year (2018), the largest annual increase was health insurance (this year an increase of 7.8%).
The document also found that Canadian life and health insurers paid out a record $103 billion in benefits last year, up from $98 billion in 2018 and up 60% over a decade.
Benefits paid included $53.3 billion in retirement annuities (both employer-sponsored and individual) as well as $12.1 billion in life insurance benefits.
Individual life insurance is constantly growing
Individual life insurance represented 63% of all policies in force in 2019, up from 55% a decade ago, and was mainly driven by term insurance during this period.
Individual term represented 38% of life insurance in 2019 compared to 30% in 2009.
The share of individual general and whole life insurance has remained quite stable over the last decade and in 2019 amounted to 13% and 12% of life insurance, respectively.
The average life insurance coverage per Canadian household in 2019 was $432,000, which is approximately five times household income. Insurance value increased from $423,000 in 2018.
The average age of life insurance customers varied by province, ranging from 34 in the territories to 47 in Newfoundland.
For detailed information, please read Canadian Life and Health Insurance Facts, 2020 Edition.
