Life Insurance & Annuities in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 52411aCARevenue
$98.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
98,229
Businesses
105
Wages
$X.Xbn
Life Insurance & Annuities in Canada industry analysis
Insurers in Canada have experienced steady growth during the current period. Insurers accept liability for annuities and life insurance policies, disability income, accidental death and dismemberment insurance policies while investing the premiums clients receive into various financial securities. The industry has mainly suffered from the adverse economic effects caused by the pandemic, such as volatile interest rates and an increase in the morbidity rate. Revenue dropped at a CAGR of 1.2% to $98.7 billion, including a 1.6% rise in 2024 alone, when profit reached 0.4%. However, growth was limited due to decreased investment income and increased claim payouts stemming from the pandemic, which forced industry operators to pay consumers more while earning less interest on their invested capital.聽
Trends and Insights
- The Bank of Canada increased interest rates to curb inflation. The higher rates will boost life insurers' investment income from bonds.
- Annuities and life insurance policies are the most relevant products offered to clients. It's the main focus of life insurance and annuity providers.
- Business locations largely mirror the geographic spread of the population. More populated provinces tend to have more establishments than their less populous counterparts.
- Concentration is dependent on company structures. Concentration within an individual provider structure is common, but not so much across the entire industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated $98.7bn in 2024.
Trends and Insights
Insurers have increasingly consolidated in recent years
- Consolidation has increased in recent years. Larger insurers benefit from mergers and acquisitions because of economies of scale and improved efficiency, mainly since the cost of investment management, underwriting and back-office support can be spread across more clients.
- Additional trends and insights available with purchase
Source: 麻豆区
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Changing demographic and macroeconomics trends
- Younger generations haven't yet significantly added to life insurance and annuity demand. A big part of this is because of higher indebtedness, lower net wealth and lower real incomes of millennials relative to their baby boomer forebears, the wealthiest generation in history.
Biggest companies in the Life Insurance & Annuities in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Sun Life Financial Inc. | 18,172.4 | 1,314.1 | 7.2 | |
Canada Life Assurance Company | 14,649.7 | 2,943.3 | 20.1 | |
Manulife Financial Corporation | 1,566.8 | 782.1 | 49.9 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: 麻豆区
Industry revenue is measured across several distinct product and services lines, including Group annuities, Individual annuities and Group life insurance . Group annuities is the largest segment of the Life Insurance & Annuities in Canada.
Trends and Insights
Group annuities are decreasing in popularity
- Group annuities policies are purchased by a third party, like an employer, for its employees. Annuities are sold as either immediate or deferred annuities and the two products differ in payment structures. Immediate annuities make policy payments directly after purchase, while deferred annuities delay payments until later, like retirement.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Loan Administration, Cheque Cashing & Other Services in Canada
Complementors
- Commercial Banking in Canada
- Credit Unions in Canada
- Insurance Brokers & Agencies in Canada
International industries
- Global Life & Health Insurance Carriers
- Life Insurance & Annuities in the US
- Life Insurance in Australia
- Life Insurance in New Zealand
- Life Insurance in the UK
Table of Contents
About this industry
Industry definition
The life insurance and anniversaries industry in Canada accepts liability under annuities, life, disability income and accidental death and dismemberment insurance policies. Enterprises include fraternal organizations, privately held insurers, publicly traded insurers and mutual insurance companies.
What's included in this industry?
Underwriting group life policiesUnderwriting individual life policiesUnderwriting group annuitiesUnderwriting individual annuitiesInvesting insurance premiumsCompanies
Sun Life Financial Inc.Canada Life Assurance CompanyManulife Financial CorporationPurchase this report to view all 3 major companies in this industry.
Related Terms
FIXED ANNUITYPERMANENT LIFE INSURANCETERM LIFE INSURANCEVARIABLE ANNUITYVARIABLE LIFE INSURANCEWHOLE LIFE INSURANCEIndustry Code
NAICS 52411 - Life Insurance & Annuities in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Bank of Canada increased interest rates to curb inflation. The higher rates will boost life insurers' investment income from bonds.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Annuities and life insurance policies are the most relevant products offered to clients. It's the main focus of life insurance and annuity providers.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Business locations largely mirror the geographic spread of the population. More populated provinces tend to have more establishments than their less populous counterparts.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Concentration is dependent on company structures. Concentration within an individual provider structure is common, but not so much across the entire industry.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry鈥檚 level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry鈥檚 own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Large companies are increasingly relying on technology to remain competitive amid intense competition. Large insurers use technology to identify the most desirable and cost-e...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Sun Life Financial Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Canada Life Assurance Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Manulife Financial Corporation's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Sun Life Financial Inc., and factors influencing its performance in the industry
- Description and key data for Canada Life Assurance Company, and factors influencing its performance in the industry
- Description and key data for Manulife Financial Corporation, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.聽 聽
Analyst insights
Regulation is still heavily influenced by the Great Depression and the Great Recession. The government wants to ensure economic crises don’t arise again.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)聽
- Assistance historical data and forecast (2014-2029)聽
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.聽
Analyst insights
Profit depends on the state of financial markets and the number of policies issued. The record-low interest rate environment throughout most of the early part of the period h...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios聽(2017-2022)
- Coverage Ratios聽(2017-2022)
- Leverage Ratios聽聽(2017-2022)
- Operating Ratios聽(2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability聽
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are 麻豆区 reports created?
麻豆区 has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for 麻豆区 readers. Finally, each report is reviewed by one of 麻豆区鈥檚 editors, who provide quality assurance to ensure accuracy and readability.
麻豆区 relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do 麻豆区 analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, 麻豆区鈥檚 global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does 麻豆区 forecast its data?
麻豆区鈥檚 analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
麻豆区 prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the .
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Life Insurance & Annuities industry in Canada in 2024?
The market size of the Life Insurance & Annuities industry in Canada is $98.7bn in 2024.
How many businesses are there in the Life Insurance & Annuities in Canada industry in 2024?
There are 105 businesses in the Life Insurance & Annuities industry in Canada, which has grown at a CAGR of 1.0 % between 2019 and 2024.
Has the Life Insurance & Annuities industry in Canada grown or declined over the past 5 years?
The market size of the Life Insurance & Annuities industry in Canada has been declining at a CAGR of 1.2 % between 2019 and 2024.
What is the forecast growth of the Life Insurance & Annuities industry in Canada over the next 5 years?
Over the next five years, the Life Insurance & Annuities industry in Canada is expected to grow.
What are the biggest companies in the Life Insurance & Annuities market in Canada?
The biggest companies operating in the Life Insurance & Annuities market in Canada are Sun Life Financial Inc., Canada Life Assurance Company and Manulife Financial Corporation
What does the Life Insurance & Annuities in Canada include?
Underwriting group life policies and Underwriting individual life policies are part of the Life Insurance & Annuities industry.
Which companies have the highest market share in the Life Insurance & Annuities in Canada?
The company holding the most market share in Canada is Sun Life Financial Inc..
How competitive is the Life Insurance & Annuities industry in Canada?
The level of competition is high and steady in the Life Insurance & Annuities industry in Canada.
