Canadian life insurance space shows new signs of life

INSURANCE

“Our premiums were up significantly, which is a little bit different than what most firms experienced in 2022,” McMillan told Wealth Professional recently. “2021 was our best year ever for life insurance, and now 2022 is our best year ever as we outpaced the market set a new bar in our own sales.”

Aside from the high-quality advisors that have come under the Gryphin umbrella, McMillan says advisors that have been with the firm for years have continued to grow their practices – as well as their sale counts and application counts – through challenging markets.

Based on information reported to it, MIB found the decline in applications last year was driven by policies up to and including $500,000, which made up two thirds (67%) of total activity. While applications for face amounts over $1 million saw double-digit growth, that wasn’t quite enough to make up for the double-digit fall in activity for smaller policies of up to $500,000.

Still, 2022 was a sunnier year for some insurers. In an emailed statement, a spokesperson from Manulife told Wealth Professional that the company increased its annualized premium equivalent year-over-year sales by 3%, and the insurer’s new business value jumped year-over-year by an impressive 18%. Growth across all group insurance markets, strong momentum in par, and a record-breaking year for travel insurance amid a rebound in leisure travel were also bright spots.

“Overall, we are cautiously optimistic for 2023,” the email said. “We believe the sales momentum is still positive, and we benefit from the diversity of our businesses, which allows us to be well positioned to withstand different environments, including a potential recession.”

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