Mutual assurance: Rising disposable income and an aging population will ensure industry growth

The Life Insurance and Annuities industry in Canada has experienced solid growth over the five years to 2019 amid increasing wealth and an aging population. Industry operators accept liability for annuities and life insurance policies, disability income and accidental death and dismemberment insurance policies, while also investing the premiums received by clients into a variety of financial securities. Life and annuity premiums have increased every year over the five years to 2019, as several key external drivers have provided continued stimulus. The industry's expansion is expected to be driven by similar trends that characterized the growth of the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • New technologies will automate operations and improve efficiency
  • Longer life expectancies will put pressure on industry products
  • Major players will invest in artificial intelligence to improve insights
  • Industry Report - Starting a New Business Chapter

    The most significant barrier to entry for the Life Insurance and Annuities industry in Canada involves raising the extensive amount of capital required to run operations. New entrants must develop a massive distribution network, relying on both in-house and independent agents and brokers to sell their products. Additionally, the new business must hire highly skilled actuaries and underwriters to accurately and competitively price policies, while simultaneously minimizing risk. As a result, the most successful entrants in the industry are typically insurers with operating histories in other product lines that have decided to expand into the domestic life insurance and annuities market...purchase to read more.

    Additional Insights for the Life Insurance & Annuities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Life Insurance & Annuities Industry are

  • Financial strength
  • Effective asset management
  • Having an extensive distribution network
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Median age of population in the Life Insurance & Annuities industry impact industry performance..

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    What's in this report

    What is the Life Insurance & Annuities Industry?

    This industry accepts liability under annuities and life, disability income and accidental death and dismemberment insurance policies. Enterprises include fraternal organizations, privately held insurers, publicly traded insurers and mutual insurance companies.

    Industry Products
  • Group annuities
  • Individual annuities
  • Group life insurance premiums
  • Individual life insurance premiums
  • Industry Activities
  • Underwriting group life policies
  • Underwriting individual life policies
  • Underwriting group annuities
  • Underwriting individual annuities
  • Investing insurance premiums
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Median age of population
  • Number of adults aged 65 and older
  • Overnight rate

  • Current Performance
  • Revenue and demographic trends
  • Business environment
  • Chart: Revenue Growth

  • Industry Outlook
  • Trends in technology and structure
  • Favourable fundamentals
  • Table: Life Insurance & Annuities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Life Insurance & Annuities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining In Canada
  • Manufacturing In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Insurance Brokers & Agencies in Canada
  • Portfolio Management in Canada
  • Third-Party Administrators & Insurance Claims Adjusters in Canada

  • Products & Services
  • Group annuities
  • Individual life insurance premiums
  • Individual annuities
  • Group life insurance premiums
  • Chart: Life Insurance & Annuities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 65 and older
  • Individuals aged 45 to 54
  • Individuals aged 55 to 64
  • Individuals aged 35 to 44
  • Individuals aged 34 and younger
  • Chart: Major Market Segmentation for the Life Insurance & Annuities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitBenefit paymentsWages and other
  • Chart: Cost Structure Benchmarking – Sector vs Life Insurance & Annuities

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Life Insurance & Annuities Industry

  • Industry Globalization
    Manulife Financial Corporation, Sun Life Financial Inc., The Great-West Life Assurance Company,
  • Table: Manulife Financial Corporation - financial performance
  • Table: Sun Life Financial Inc. - financial performance
  • Table: The Great-West Life Assurance Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Life Insurance & Annuities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Life Insurance & Annuities Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Per Capita Disposable Income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fixed Annuity
  • A type of investment vehicle that guarantees a future stream of fixed payments. Annuities transfer investment risk from the insured to the insurer.
  • Permanent Life Insurance
  • A policy that provides similar coverage as term life insurance but is meant to be held and paid for during the duration of the insured person's life.
  • Term Life Insurance
  • A policy that provides life insurance coverage at a fixed rate of payments over a limited period of time, usually one year. After the period, coverage at the previous rate is not guaranteed.
  • Variable Annuity
  • A type of annuity that provides future payments to the contract holder, usually at retirement. Payments are dependent on the performance of annuity's underlying portfolio of securities.
  • Variable Life Insurance
  • A type of life insurance in which benefit payments are determined by the performance of underlying investments chosen by the policyholder.
  • Whole Life Insurance
  • A permanent life insurance policy that remains in force for the insured person's whole life as long as premium payments remain current or on time.
  • What Our Customers Say

    Why buy this report?

    The Life Insurance & Annuities market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Life Insurance & Annuities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Life Insurance & Annuities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Life Insurance & Annuities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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