Record-Breaking $2.3 Billion in Canadian Individual Life Insurance Premiums for 2025: LIMRA Survey Highlights Digital-Driven Growth
Canadian life insurance new annualized premium reached a historic high of $2.3 billion in 2025, marking a 9% increase from the previous year, according to LIMRA’s Canadian Individual Life Insurance Sales Survey. This milestone highlights the sector’s robust performance despite broader economic pressures, fueled by advancements in digital tools and broader product offerings.
The Canadian individual life insurance sector achieved unprecedented results in 2025, with new annualized premium climbing 9% year-over-year to $2.3 billion CAD, establishing an all-time high. This figure comes from LIMRA’s comprehensive Canadian Individual Life Insurance Sales Survey, which captures 93% of the market and reflects consistent expansion across all major categories.
Policy sales also advanced, rising 4% compared to 2024 levels. Nancy Moussa, Associate Research Director at LIMRA Insurance Product Research, noted the market’s strength:This marked a solid year overall, with every product segment showing increases in both premium and policy volumes. Carriers’ focus on technology enhancements has streamlined sales, underwriting, and customer interactions, positioning the industry for sustained momentum into 2026.
Digital advancements reshape the landscape
Insurers have accelerated adoption of AI-driven underwriting for faster approvals, predictive modeling for precise risk evaluation, and online platforms to broaden accessibility. These innovations help close longstanding protection shortfalls, where many households remain underinsured. Recent estimates indicate a significant coverage gap persists in Canada, with millions lacking adequate protection despite rising awareness of financial security needs.
Detailed product segment breakdown
- Whole life dominated with $1.6 billion in new premium, accounting for 70% of the total market and posting a 10% rise. Participating whole life options led the surge, contributing 87% of the category’s growth, and over 60% of providers saw uplifts. This extended a run of six straight quarters of premium expansion. In the final quarter alone, whole life premium reached $463.5 million (up 5%), while policies increased 7%.
- Universal life generated $282.7 million, an 11% jump and 12% market share. Non-level cost-of-insurance variants made up 76% of this segment’s premium and fueled most advances, with over 80% of carriers reporting positive results. Policies grew 3% annually, and Q4 premium hit $73 million (up 9%) with a 5% policy increase.
- Term life contributed $398.1 million, up 5% and holding 18% share. Policy volume rose 4% year-over-year.
Q4 and full-year momentum
The fourth quarter delivered $640.5 million in total new annualized premium, a 6% improvement over the same period in 2024, alongside a 5% policy count rise. This capped seven consecutive quarters of overall growth.
North American context and forward outlook
Similar patterns emerged in the U.S., where individual life premium rose 7% in the first nine months of 2025, led by indexed universal life (up 13%), whole life (up 10%), and variable universal life (up 19%). Across the continent, carriers prioritize streamlined processes, customer engagement tools, and analytics to boost efficiency and reach.
Looking ahead, LIMRA anticipates ongoing expansion in Canada through continued technology integration, enhanced distribution strategies, and greater consumer focus on addressing protection needs. The combination of resilient demand and operational improvements supports a positive trajectory for the market in 2026 and beyond.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.