Canadian individual life insurance new annualized premium jumped 9% year-over-year to $2.3 billion in 2025, setting a new record as the industry defies economic headwinds through strategic technology investments and product diversification.
The total number of individual life insurance policies sold in 2025 increased 4% from 2024, according to LIMRA's Canadian Individual Life Insurance Sales Survey, which represents 93% of the Canadian market.
"It was a strong quarter and year for the Canadian individual life insurance market. All product lines experienced year-over-year premium and policy sales growth," said Nancy Moussa, associate research director, LIMRA Insurance Product Research. "Despite a softening economy, recent carrier investments in technology have improved many aspects of the sales and marketing processes, which LIMRA expects will help propel 2026 toward continued growth."
The results reflect industry-wide digital transformation. By 2026, life insurers have significantly enhanced customer experiences through AI-powered underwriting that accelerates policy issuance, predictive analytics improving risk assessment accuracy, and digital distribution channels expanding market reach.
These technology investments address persistent challenges: the life insurance coverage gap in Canada reached $17 trillion in 2023, with 28% of Canadians having no life insurance coverage at all.
Whole life new premium totaled $1.6 billion in 2025, up 10% year over year, representing 70% of the market. Participating whole life premium drove most of the growth, making up 87% of whole life sales growth, with more than 60% of carriers reporting increases. This marks the sixth consecutive quarter of whole life premium growth.
In Q4, whole life new premium was $463.5 million, 5% above prior year results, with policy count improving 7%.
Universal life new premium totaled $282.7 million in 2025, 11% higher than the prior year, representing 12% of total Canadian new annualized premium. Non-level cost of insurance products, representing 76% of total universal life premium, drove growth, with more than 80% of carriers reporting increases. Policy count increased 3% year over year.
Meanwhile, universal life premium grew 9% in Q4 to $73 million, with policy count rising 5%.
Term life new premium totaled $398.1 million in 2025, 5% higher than 2024, holding 18% of total Canadian new annualized premium. Policy count grew 4% year over year.
The Canadian results align with broader industry trends. US individual life insurance new annualized premium increased 7% in the first nine months of 2025, driven by indexed universal life (up 13%), whole life (up 10%), and variable universal life (up 19%). North American life insurers continue investing heavily in digital capabilities, with technology spending focused on streamlined underwriting processes, enhanced customer engagement platforms, and data analytics capabilities.
Fourth-quarter momentum carried into year-end, with total new annualized premium reaching $640.5 million, up 6% from fourth quarter 2024. Policy count rose 5% compared with prior year results.
The performance demonstrates resilience amid economic uncertainty, with carriers leveraging technology to improve efficiency while expanding product accessibility.
As the industry heads into 2026, LIMRA expects continued growth driven by ongoing digital transformation, expanded distribution capabilities, and persistent consumer awareness of the protection gap.
