Choosing the right life insurance provider is essential for ensuring the financial security of your family. As you explore options in Canada, it’s important to understand the leading players in the market. This article takes a deep dive into the 10 largest life insurance companies in Canada, examining their strengths, offerings, and what they bring to the table for consumers seeking reliable coverage.
The Top Life Insurance Providers in Canada
The following list of the biggest life insurance companies in Canada is based on a range of key factors, such as annual premiums, financial stability ratings, and global assets. These elements are crucial for determining how many policies the companies manage and their ability to honor claims when needed.
1. Manulife
- Assets: $849 billion
- Financial Strength Rating: A+
- Gross Written Premiums: $37.9 billion
- Headquarters: Toronto, ON
Manulife is a major player in the Canadian life insurance market, offering a broad range of products that cater to various needs. The company also includes its subsidiary, John Hancock, which operates in the United States.
2. Canada Life
- Assets: $394.0 billion
- Financial Strength Rating: A+
- Gross Written Premiums: $54.3 billion
- Headquarters: Winnipeg, MB
Canada Life, formed after the merging of Great-West Life and London Life, provides a wide variety of life and living benefits products. The company also offers a standout disability product, the Lifetime Benefit.
3. Sun Life Financial
- Assets: $330.9 billion
- Financial Strength Rating: A+
- Gross Written Premiums: $26.9 billion
- Headquarters: Toronto, ON
Sun Life is another heavyweight in Canada, with extensive life and living benefits offerings. The company has a history of acquiring various insurance firms, such as Clarica Insurance, which solidified its position in the market.
4. Desjardins Insurance
- Assets: $407.1 billion
- Financial Strength Rating: N/A
- Gross Written Premiums: $11.8 billion
- Headquarters: Levis, QC
Desjardins, based in Quebec, provides life, disability, and critical illness insurance. After acquiring State Farm Canada in 2018 and IDC Worldsource Insurance Network in 2023, Desjardins has solidified its place in the Canadian insurance sector.
5. Industrial Alliance (iA)
- Assets: $87.4 billion
- Financial Strength Rating: A+
- Gross Written Premiums: $13.1 billion
- Headquarters: Quebec City, QC
Founded in 1887, Industrial Alliance offers individual and group insurance products and wealth management solutions. Its notable acquisitions include Hollis Wealth Management and PPI Management Inc.
6. RBC Insurance
- Assets: $15.1 billion
- Financial Strength Rating: A
- Gross Written Premiums: $4.2 billion
- Headquarters: Mississauga, ON
RBC Insurance is part of the Royal Bank of Canada and offers both life insurance and other insurance products like property and casualty. Their offerings cater to a broad range of individuals and families.
7. Beneva
- Assets: $25.1 billion
- Financial Strength Rating: A
- Gross Written Premiums: $6.2 billion
- Headquarters: Quebec City, QC
Beneva was created in 2020 through the merger of SSQ and La Capitale. As one of Quebec’s major insurers, they offer life, property, and casualty insurance, with a focus on providing flexible and comprehensive coverage.
8. BMO Life Insurance
- Assets: $11.2 billion
- Financial Strength Rating: A
- Gross Written Premiums: $2.0 billion
- Headquarters: Toronto, ON
BMO Insurance, affiliated with the Bank of Montreal, offers a variety of life insurance products, including critical illness coverage. The company entered the life insurance market through the acquisition of AIG Life Insurance Company of Canada.
9. Co-operators
- Assets: $19.4 billion
- Financial Strength Rating: A
- Gross Written Premiums: $4.9 billion
- Headquarters: Guelph, ON
Co-operators, originally serving farmers, has expanded to offer a full range of life, group, and wealth management insurance products. It also provides property and casualty insurance under The Co-operators Group Limited.
10. Ivari
- Assets: $12.1 billion
- Financial Strength Rating: A+
- Gross Written Premiums: $989.4 million
- Headquarters: Toronto, ON
Ivari, formerly part of Transamerica, offers term and universal life plans, critical illness insurance, and investment products. Ivari is known for offering solutions to individuals who may be considered uninsurable by other providers.
The Canadian Life Insurance Market
The Canadian life insurance industry covers over 22 million people, with life insurance policies valued at $5.3 trillion. In 2023, insurers paid out $14.3 billion in benefits, which included both death benefits and payouts for dividends, surrenders, and disability benefits.
There are around 150 insurers in Canada, with approximately 70 offering life insurance products. Of these, many are subsidiaries of larger companies. Life insurance preferences among Canadians tend to favor group policies, which account for about 66% of sales, while individual policies make up the remaining 34%.
Benefits of Choosing a Large Life Insurance Company
Opting for a larger insurer comes with several advantages:
- Financial Stability: Large companies have extensive resources and are well-positioned to handle economic downturns. This gives policyholders confidence in the company’s ability to pay out claims when needed.
- Comprehensive Coverage Options: Major insurers offer a wide range of coverage, often with add-ons and the flexibility to bundle other products like disability or critical illness insurance.
- Proven Track Record: Large insurers have a long-standing history and established reputations for reliability. They often have dedicated departments for handling claims efficiently.
- Exceptional Customer Support: Larger companies typically offer robust customer service systems, with multiple channels for policy management and support.
- Technology Investment: Many of the biggest insurers invest heavily in technology, making it easier to manage policies, file claims, and track information via mobile apps and online portals.
Why Consider Smaller Life Insurance Companies?
While large insurers dominate the market, smaller companies also offer distinct advantages:
- Personalized Service: Smaller companies can provide more customized service, focusing on the individual needs of their clients.
- Competitive Rates: Smaller insurers often offer lower premiums due to their lower operational costs.
- Flexibility: Smaller firms tend to be more adaptable, offering tailored solutions that cater to unique life circumstances.
- Niche Expertise: Some smaller insurers specialize in specific markets, such as individuals with high-risk jobs or pre-existing health conditions, providing a more targeted approach.
- Streamlined Communication: With fewer clients, smaller companies offer more direct communication, allowing for faster and more efficient customer service.
Conclusion
When it comes to life insurance, Canadians have a broad spectrum of options, ranging from major insurers with vast resources to smaller companies offering personalized, flexible coverage. The best choice depends on your specific needs, financial situation, and the level of service you prefer. Understanding the top players in the Canadian life insurance industry is an important first step in securing your family’s future.