Life Insurance in Canada, Key Trends and Opportunities to 2017


#185781

262pages

Timetric

$ 1950

In Stock


Synopsis

The report provides in-depth market analysis, information and insights into the Canadian life insurance segment, including:

  • The Canadian life insurance segment’s growth prospects by life insurance categories
  • Key trends and drivers for the life insurance segment
  • The various distribution channels in the Canadian life insurance segment
  • The detailed competitive landscape in the life insurance segment in Canada
  • Regulatory policies of the Canadian insurance industry
  • A description of the life reinsurance segment in Canada
  • Porter's Five Forces analysis of the life insurance segment
  • A benchmarking section on the Canadian life insurance segment in comparison with other countries with US$60–US$150 billion in gross written premium
Executive summary

The Canadian life insurance segment registered a review-period (2008−2012) compound annual growth rate (CAGR) of 2.3% despite a prolonged period of low interest rates, rising levels of household debt, the European debt crisis and weak economic development. Growth was partially a consequence of re-pricing and de-risking practices adopted by insurers, which eventually strengthened their capital positions and balance sheets. Growth was compounded by the strong performance of the equity market, low unemployment rates and inflation. These factors are expected to support the growth of the segment over the forecast period (2012−2017). As such, the segment is expected to increase from a value of CAD40.2 billion (US$40.2 billion) in 2012 to CAD49.0 billion (US$47.3 billion) in 2017, at a projected CAGR of 4.1%. Numerous challenges will be faced however, with persistently low interest rates over the early part of the forecast period and regulatory challenges relating to capital and solvency margins being the main issues.

Scope

This report provides a comprehensive analysis of the life insurance segment in Canada:

  • It provides historical values for the Canadian life insurance segment for the report’s 2008–2012 review period and forecast figures for the 2012–2017 forecast period.
  • It offers a detailed analysis of the key categories in the Canadian life insurance segment, along with market forecasts until 2017.
  • It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions.
  • It analyses the various distribution channels for life insurance products in Canada.
  • Using Porter’s industry-standard “Five Forces” analysis, it details the competitive landscape in Canada for the life insurance business.
  • It provides a detailed analysis of the reinsurance segment in Canada and its growth prospects.
  • It profiles the top life insurance companies in Canada and outlines the key regulations affecting them.

Reasons to buy

  • Make strategic business decisions using in-depth historic and forecast market data related to the Canadian life insurance segment and each category within it
  • Understand the demand-side dynamics, key market trends and growth opportunities within the Canadian life insurance segment
  • Assess the competitive dynamics in the life insurance segment, along with the reinsurance segment
  • Identify the growth opportunities and market dynamics within key product categories
  • Gain insights into key regulations governing the Canadian insurance industry and its impact on companies and the market's future

Key highlights

  • The Canadian life segment has remained resilient to the volatility of the financial markets and uncertain economic conditions following the financial and the European debt crisis during the review period.
  • The segment is open to foreign insurers and therefore has access to capital from foreign sources.
  • The introduced PRPPs are expected to provide accessible and low-cost retirement savings for Canadians who do not participate in an employer’s sponsored pension plan
  • The three largest Canadian life insurers are among the top 15 in the world in terms of stock market capitalization.
  • The Canadian life insurance segment’s minimum continuing capital and surplus requirements (MCCSR) ratio stood at 212% in 2013, significantly above OSFI’s requirement of 150%. This states that the segment is adequately capitalized.