|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 117.92
Billion
|
|
CAGR (2025-2030)
|
4.55%
|
|
Fastest Growing Segment
|
Non-Life Insurance
|
|
Largest Market
|
The Atlantic Provinces
|
|
Market Size (2030)
|
USD 149.34 Billion
|
Market Overview
Canada
Life & Non-Life Insurance market was valued at USD 117.92 Billion in 2024 and is expected to grow to USD 149.34 Billion by 2030 with
a CAGR of 4.55% during the forecast period. The Canada Life & Non-Life Insurance
market is the growing consumer awareness of financial security and risk
management. As Canadians face increasing healthcare costs, property risks, and
uncertainty in economic conditions, the demand for comprehensive life and
non-life insurance products has risen. Also, Canada’s aging population is
driving the need for life insurance and retirement solutions, while increasing
urbanization and changing lifestyle patterns are boosting demand for property,
auto, and health insurance. Technological advancements also play a role, with
digital platforms offering more accessible, efficient, and personalized
insurance options. These factors combined contribute to the continued growth of
the Canadian insurance market.
Key Market Drivers
Large
Pool of People Suffering from Cardiovascular Disease
The large pool of people suffering from
cardiovascular disease is a significant driver in the Canada Life &
Non-Life Insurance market. As a part of this, according to a recent study, as
of 2022, cardiovascular disease is the second biggest cause of mortality in
Canada, accounting for approximately 17.2% of all deaths. Cardiovascular diseases
(CVDs) are among the leading causes of death and disability in Canada,
affecting millions of individuals. As the prevalence of these conditions
increases, both life and non-life insurers are seeing higher demand for
products that cater to individuals with CVDs. Life insurance companies are
adapting their underwriting processes to accommodate individuals with
pre-existing cardiovascular conditions, offering specialized coverage and
critical illness policies that protect against life-threatening health events
like heart attacks and strokes.
Similarly, the non-life insurance
sector, particularly health and disability insurance, is experiencing growth.
More people living with CVDs require ongoing treatment, rehabilitation, and
potentially long-term care, leading to a greater need for comprehensive health
insurance plans. Disability insurance also sees higher demand as cardiovascular
conditions can lead to long-term disabilities, affecting a person’s ability to
work. This shift drives insurers to innovate and offer more tailored products,
ensuring financial protection and access to healthcare for a growing segment of
the population affected by cardiovascular diseases in Canada.
Surging
Population Across the Region
The surging population across Canada is a key driver
of the Life & Non-Life Insurance market. As a part of this, according to
Statistics Canada, Canada's population was expected to reach 41,465,298 on
October 1, 2024, an increase of 176,699 individuals (+0.4%) from July 1. As
Canada’s population continues to grow, driven by both natural growth and
immigration, the demand for insurance products is also rising. A larger
population leads to an increase in potential policyholders for both life and
non-life insurance, with people seeking financial protection for themselves,
their families, and their assets.
This demographic shift also contributes to a growing
demand for various types of coverage, including health, auto, property, and
life insurance. With an aging population, there is a heightened need for life
insurance, retirement solutions, and health-related products. Similarly,
younger generations, especially those starting families or entering the
workforce, are increasingly investing in life and non-life insurance policies
to secure their financial future. The growing population also drives urbanization,
leading to a higher number of people residing in metropolitan areas, which
increases the demand for home and auto insurance. As the population
diversifies, insurers are adapting by offering customized policies to meet the
specific needs of various demographic groups, further expanding market growth
in Canada.
Rising
Sales of Vehicles
The rising sales of vehicles in Canada significantly
drive the Life & Non-Life Insurance market, particularly in the non-life
segment. As a part of this, according to Statistics Canada, the total number
of road motor vehicles registered in Canada in 2022 was 26.3 million, a 0.3%
increase from 2021.With the growing demand for both new and used vehicles,
there is an increased need for auto insurance coverage. As more Canadians
purchase cars, trucks, and other vehicles, insurers are seeing a surge in
demand for policies that protect against risks such as accidents, theft, and
natural disasters. The rising number of vehicles on the road also leads to
higher traffic-related incidents, making comprehensive and collision coverage
more essential for policyholders.
Also, the growing popularity of electric vehicles
(EVs) and hybrids in Canada is pushing insurers to develop specialized policies
that address the unique needs of these vehicles, such as coverage for
battery-related issues and charging infrastructure. As vehicle ownership
continues to rise, so does the need for liability coverage, ensuring financial
protection for both drivers and pedestrians. This trend contributes to the
overall growth of the non-life insurance sector, driving insurers to innovate
and offer more tailored auto insurance products. The rising sales of vehicles,
along with an increasing focus on safety and environmental concerns, continue
to propel the demand for auto insurance in Canada.
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Key Market Challenges
Higher Premium Rates
Higher premium rates present a significant challenge
in the Canada Life & Non-Life Insurance market. As a part of this, according
to LIMRA's Canadian Individual Life Insurance Sales Survey, the new annualized
premium for Canadian life insurance climbed 4% in 2023, reaching USD 1.86
billion. This is the greatest sales figure ever reported in the Canadian market
since the poll began in 1993.As insurance companies increase their rates to
cover rising claims costs, higher operational expenses, and increased risk
exposure, the affordability of insurance becomes a concern for many consumers.
In the life insurance market, higher premiums are often driven by factors such
as the aging population, increased healthcare costs, and higher incidences of
chronic illnesses. These escalating costs can result in a reluctance among
potential policyholders to purchase life insurance or opt for reduced coverage.
In the non-life insurance market, rising premiums are
largely driven by factors such as the increasing frequency and severity of
natural disasters, higher property repair and replacement costs, and the rising
cost of automobile repairs. These higher premiums can strain consumer budgets,
particularly for those already facing economic challenges. Also, the hike in
premiums can drive some consumers to drop or downgrade their policies, leaving
them underinsured or unprotected, which could lead to financial hardship in the
event of a claim. Insurance companies must balance the need to raise premiums
with maintaining affordability and consumer satisfaction, making this a
persistent challenge in the market.
Lack
Of Awareness Among Consumers
Lack of awareness among consumers is a significant
challenge in the Canada Life & Non-Life Insurance market. Many consumers
are either underinsured or unaware of the full range of insurance products
available to them. This lack of awareness stems from limited understanding of
how insurance works, the types of coverage needed, and the benefits of various
policies. Life insurance remains an area where many people fail to recognize
its importance until later in life, leaving gaps in coverage when financial
security is most needed. In the non-life insurance sector, consumers may not be
fully aware of the risks they face, such as property damage, vehicle accidents,
or health-related emergencies. This lack of understanding often leads to
inadequate insurance coverage or a failure to purchase insurance altogether. Also,
many people struggle to navigate complex policy terms and conditions, which
further diminishes their understanding. This challenge has led insurers to focus on improving
consumer education through digital platforms, marketing campaigns, and
consultations. Educating consumers about the importance of insurance and how it
works is crucial for increasing market penetration, ensuring proper coverage,
and reducing the number of underinsured individuals in Canada.
Key Market Trends
Increased
Adoption of Online Platform
The increased adoption of online platforms is a
significant trend in the Canada Life & Non-Life Insurance market. As
consumers increasingly prefer the convenience and accessibility of digital
channels, insurers are shifting their operations to online platforms, offering
users a seamless and efficient way to compare, purchase, and manage policies.
This shift is driven by growing consumer expectations for fast, easy, and
transparent digital experiences.
Online platforms enable insurers to reach a broader
audience, providing a convenient alternative to traditional face-to-face
consultations. They also allow for real-time policy updates, quicker claims
processing, and easy access to policy documents, enhancing customer
satisfaction and engagement. Mobile apps, chatbots, and AI-driven tools are
also gaining popularity, making it easier for customers to interact with
insurers and receive personalized service. The adoption of online platforms
has also led to more competitive pricing, as insurers leverage digital tools
for data analysis, underwriting, and risk assessment, ultimately offering more
tailored products at better prices. As consumer behaviour continues to shift
towards digital, the insurance industry in Canada is likely to see further
growth in online transactions and digital customer engagement, reshaping the
future of the market.
Growing
Adoption of Eco-Friendly Insurance Policy
The growing adoption of eco-friendly insurance
policies is a prominent trend in the Canada Life & Non-Life Insurance
market. As environmental concerns rise, more consumers are seeking sustainable
insurance options that align with their values. Insurers are responding by
offering eco-friendly policies that support green initiatives, such as covering
electric vehicles (EVs), renewable energy installations, and energy-efficient
homes. These policies often come with incentives like discounts for purchasing
electric vehicles or using environmentally friendly home improvements,
encouraging consumers to adopt more sustainable practices.
In the life insurance sector, some companies are now
offering green policies that invest in environmentally responsible funds,
providing policyholders with the opportunity to support eco-friendly businesses
through their premiums. Also, insurers are adopting more sustainable
operational practices, such as reducing paper use and improving digital
platforms, contributing to the broader trend of environmental responsibility. This
trend reflects a shift in consumer behaviour, with individuals becoming more
aware of their ecological footprint and looking for insurance solutions that
promote sustainability. As this demand for eco-friendly policies grows,
insurers in Canada are likely to continue innovating and expanding their
offerings to cater to environmentally conscious consumers.
Growing
Demand for Comprehensive Coverage Policies
The growing demand for comprehensive coverage policies
is a key trend in the Canada Life & Non-Life Insurance market. As consumers
face an increasingly complex risk landscape, they are seeking more extensive
insurance solutions that offer greater protection across various aspects of
life and property. This trend is particularly evident in both life and non-life
insurance sectors, where policyholders are looking for coverage that goes
beyond basic offerings to safeguard against a wider range of risks.
In the life insurance market, there is a rising
preference for policies that include critical illness, disability, and
long-term care coverage, addressing health risks that extend beyond traditional
life insurance benefits. Consumers are also opting for policies that provide
financial security for their families, including coverage for funeral expenses
and debt repayment in the event of untimely death. Similarly, in the non-life
insurance sector, there is growing interest in policies that offer broader
protection, such as combined home and auto insurance, as well as policies that
cover emerging risks like cyber threats and environmental damage. Insurers are
responding by developing more holistic, customizable policies that provide
consumers with a higher level of protection, reflecting the increased desire
for comprehensive coverage in today’s uncertain world.
Segmental Insights
Type Insights
Life Insurance dominated the Canada Life &
Non-Life Insurance market, accounting for a significant share of the overall
insurance sector. This dominance is driven by the increasing need for financial
security among consumers, particularly as the population ages and faces rising
healthcare costs. Life insurance policies, including term life, whole life, and
critical illness coverage, are increasingly popular as individuals seek to
protect their families’ financial well-being in the event of death or serious
illness. Also, the growth of wealth management solutions and retirement
planning has further contributed to the prominence of life insurance in the
Canadian market.
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Regional Insights
The Atlantic Provinces dominated the Canada Life &
Non-Life Insurance market, due to several factors, including a stable population, growing
demand for insurance products, and an increasing focus on financial security.
These regions, which include Nova Scotia, New Brunswick, Prince Edward Island,
and Newfoundland and Labrador, have seen a rising demand for both life and
non-life insurance policies, driven by an aging population and an increased
awareness of financial planning. The need for health insurance, property
coverage, and life insurance is particularly high, as consumers in these areas
prioritize long-term security. Also, insurers have tailored their offerings to
meet the specific needs of residents, contributing to the region's market
leadership.
Recent Developments
- In November 2024, Manulife Canada, the
country's largest insurance company, launched two unique products to satisfy
the different needs of Canadians and their families: the 75/100 Segregated Fund
Series and Manulife Guaranteed Issue Life. The launch of the 75/100
Segregated Fund Series and Manulife Guaranteed Issue Life demonstrates
Manulife's dedication to innovation, making more insurance options available to
Canadians. A permanent life insurance product that requires no medical tests or
health questions, guaranteeing that all Canadians between the ages of 18 and 75
have access to life insurance and the protection they need.
- In July 2024, Markel Canada, a part of
London-based casualty insurer Markel International and a subsidiary of Markel
Group, launched Markel Play, a comprehensive insurance product designed specifically
for the sports, fitness, and recreation sectors. This bespoke insurance
solution, based on decades of specialist insurance experience and deep sport
understanding, offers a huge step forward in client-centricity and innovation.
- In June 2024, The Insurance Bureau of
Canada (IBC) launched DASH (Driver and Auto Search History), a new
industry-focused policy and claims information system. DASH is IBC's most
recent industry offering, joining VINLink, CLEAR, HCAI, and the Insurance
Validation Program. DASH generates complete data on a consumer's auto insurance
history, including policies, claims, and other pertinent information that is
utilized to create an insurance estimate. It is accessible to private auto
insurers and brokers licensed to sell insurance in Alberta, Ontario, New
Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador,
Nunavut, the Northwest Territories, and Yukon.
- In March 2023, TD Insurance, a Canadian
insurance firm, launched a direct insurance product offering designed
specifically for small businesses in Canada.TD Insurance for Business will be
available first in Ontario, with other provinces to follow, and will offer specialized
coverage to micro and small enterprises in a variety of industries, including
retail, contractors, wholesale, business and professional services, and
healthcare.
Key Market Players
- Intact
Financial Corporation
- The
Manufacturers Life Insurance Company
- Sun
Life Assurance Company of Canada
- Great-West
Lifeco Inc.
- Aviva
Canada Inc
- Allstate
Insurance Company
- Intact
Insurance Company
- Sonnet
Insurance Company
- CAA
Insurance Company
- Travelers
Insurance Company of Canada
|
By Type
|
By Provider
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By Region
|
- Life Insurance
- Non-Life Insurance
|
|
- The Atlantic Provinces
- Central Canada
- The Prairie Provinces
- The West Coast
- The Northern Territories
|
Report Scope:
In this report, the Canada Life & Non-Life
Insurance Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Canada Life & Non-Life Insurance
Market, By
Type:
o Life Insurance
o Non-Life Insurance
- Canada Life & Non-Life
Insurance Market, By
Provider:
o Direct
o Agency
o Banks
o Others
- Canada Life & Non-Life
Insurance Market, By Region:
o The Atlantic Provinces
o Central Canada
o The Prairie Provinces
o The West Coast
o The Northern Territories
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Canada Life & Non-Life Insurance Market.
Available Customizations:
Canada Life & Non-Life Insurance Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Canada Life & Non-Life Insurance Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at sales@techsciresearch.com