Life insurance in Canada: key figures and trends in 2023
The report "Life Insurance in Canada: Key Figures and Trends to 2023" provides an in-depth analysis of the current state of the life insurance industry in Canada and its provinces, highlighting key data and significant developments within the sector. In particular, the document examines the distribution of policies, premiums collected, the median age of policyholders, and much more, with the aim of providing a comprehensive view of life insurance in Canada in 2023.
Good to know
Key figures:
- Current life insurance assets total $5,500 billion in 2022 for Canada as a whole
- Total life insurance assets grew by 14.6% in Canada between 2018 and 2022
- In 2022, Canadians paid a total of $27 billion in life insurance premiums
- The average life insurance coverage of Canada households is $474,000 in 2022 - this is 12.1% more than in 2018
- Alberta is the province with the highest average life insurance coverage per household: $567,000
- The median age of life insurance policyholders in Alberta, Saskatchewan and Manitoba is 38, vs. 48 in Newfoundland and Labrador
- In Canada, individual term life insurance is in the majority, accounting for 40% of policies taken out
- 83% of life insurance policies taken out in Canada are individual policies
Current life insurance assets total $5,500 billion in 2022 for Canada as a whole
Life insurance assets continue to grow in Canada. In fact, between 2018 and 2022, they rose from $4,800 billion to $5,500 billion, an increase of 14.6% in 5 years. This trend illustrates the confidence that Canadians have in this investment product, as they are allocating a growing proportion of their savings to it.
In 2022, Canadians paid a total of $27 billion in life insurance premiums
Collected life insurance premiums have risen steadily in recent years in Canada, from $22.2 billion in 2018 to $27 billion in 2022, an increase of 21.6% in 5 years. This upward trend reflects a growing interest in life insurance products due to Canadians' increased concern for long-term financial security.
Source : Canadian Life and Health Insurance Facts (CHLIA, 2019, 2020, 2021, 2022 and 2023)
The average life insurance coverage of Canada households is $474,000 in 2022: this is 12.1% more than in 2018
Average household life insurance coverage in Canada has been rising steadily, from $423,000 in 2018 to $474,000 in 2022, an increase of 12.1%. In Quebec, a similar trend was observed, with an increase of 12.7% over the same period, with average life insurance coverage rising from $347,000 in 2018 to $391,000 in 2022. In 2022, average life insurance coverage for Quebec households will still be 17.5% lower than the national average.
Source : Canadian Life and Health Insurance Facts (CHLIA, 2019, 2020, 2021, 2022 and 2023)
Alberta is the province with the highest average life insurance coverage per household
The average life insurance coverage of households has evolved differently over the period from 2018 to 2022 depending on the Canadian province. In fact:
- The provinces with the highest average life insurance coverage in 2022 were Alberta ($567,000) and Saskatchewan ($519,000), with increases of 4.6% and 13.6% respectively compared to 2018.
- In contrast, the provinces with the lowest average life insurance coverage per household in 2022 were New Brunswick ($377,000) and Nova Scotia ($370,000), recording increases of 6.5% and 10.4% compared with 2018.
- Ontario is the province where the average life insurance coverage per household rose the most between 2018 and 2022, from $440,000 to $504,000, an increase of 15.5% over the period, just ahead of British Columbia (14.3% over the period).
Source : Canadian Life and Health Insurance Facts (CHLIA, 2019, 2020, 2021, 2022 and 2023)
The median age of life insurance policyholders in Canada is 43
Data on the median age of life insurance policyholders in 2022 reveal significant differences from one province to another in Canada. The provinces of Alberta, Saskatchewan and Manitoba have a median age of 38, indicating a trend towards the purchase of life insurance among a relatively young population. In contrast, the provinces of Newfoundland and Labrador and New Brunswick have a higher median age of 48 and 46 respectively.
This regional variability in the median age of life insurance policyholders reflects the different economic and demographic realities across Canada, and highlights the importance of lifelong financial planning.
Source : Canadian Life and Health Insurance Facts (CHLIA, 2019, 2020, 2021, 2022 and 2023)
In Canada, individual term life insurance is in the majority, accounting for 40% of policies taken out
The breakdown of life insurance policies in Canada in 2022 by policy type reveals a diverse landscape. In 2022, the majority of life insurance is held in the form of individual term life, representing 40% of the total, or $2,200 billion. Next :
- Group term life policies also make up a significant portion, accounting for 35% of total current life insurance outstanding in Canada, or $1,925 billion
- Individual universal life insurance and individual whole life insurance policies contribute 13% ($715 billion) and 12% ($660 billion) respectively of the total life insurance assets in Canada today.
This variety of policy types highlights the diversity of needs and preferences of life insurance policyholders in Canada, each opting for the solution that best suits their financial situation and long-term protection objectives.
Source : Canadian Life and Health Insurance Facts (CHLIA, 2019, 2020, 2021, 2022 and 2023)
83% of life insurance policies taken out in Canada are individual policies
The breakdown of life insurance policies in Canada in 2022 shows a predominance of individual policies, representing 83% of the total, while group plans account for only 17%. This breakdown illustrates Canadians' preference for personalized life insurance policies tailored to their specific needs, financial situation and objectives. Individual policies offer greater flexibility and allow policyholders to design tailor-made insurance plans.
Source : Canadian Life and Health Insurance Facts (CHLIA, 2019, 2020, 2021, 2022 and 2023)
Methodology
This document is based on open data provided by the the CHLIA (Canadian Life and Health Insurance Association). In addition to its expert editorial line on insurance and financial products, HelloSafe offers a broader range of subjects relating to global consumption in Canada and around the world, with the aim of deciphering certain complex subjects for consumers and providing original and new information.
About HelloSafe Canada
HelloSafe is a leading platform for comparing financial products (insurance, credit, investments) in Canada. Powered by its unique and powerful technology, HelloSafe provides users with dozens of free and anonymous comparison tools, calculators and expert, up-to-date content. Its platform empowers users to make the best decisions for their wallets and find the right products at the right prices for them.
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