Best’s Market Segment Report: Focus on Digitization Bolsters Growth for Canada’s Life/Annuity Insurers

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Postmedia has not reviewed the content. by Business Wire Best's Market Segment Report: Focus on Digitization Bolsters Growth for Canada's Life/Annuity InsurersAuthor of the article:OLDWICK, N.J. — Canada’s life/annuity insurers reported favorable operating results in their core lines of business in 2025 owing to favorable investment returns and increasing sales trends, supported by digitization and technology-driven, customer-centric business models. according to a new AM Best report.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIn its Best’s Market Segment Report, “Canadian Life/Annuity: A Focus on Digitization Bolsters Growth,” AM Best states that sales have been driven partially by efforts to increase accessibility and speed in acquiring life insurance, including enhancements by some companies to apply artificial intelligence to accelerate decision-making within underwriting. While premium trends are favorable, there are coverage gaps in Canada and a shift toward high-net-worth clients.“Coverage gaps are being driven by policies that have been acquired in previous years that are not keeping pace with inflation, including higher mortgages and salaries,” said Kevin Varvaro, senior financial analyst, AM Best. “This is where technology comes in to attempt to address these issues through innovation and streamlining the sales process.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAccording to the report, Canada’s life/annuity segment recorded year-over-year pretax and post-tax operating gains of 4% and 7%, respectively, in 2025. Insurance revenue growth was modest but positive over the prior year, up just over 2% to CAD 102.8 billion. International business lines continue to see faster revenue growth than the mature Canadian life market, with European revenues growing over 8% in 2025 and Asian revenues growing nearly 18% in the same period.“These factors and others are supporting AM Best’s stable outlook on Canada’s life/annuity insurance industry remains at stable, although the escalating trade dispute with the United States, as well as inflationary pressures and cyber threats, is creating challenges and growing uncertainty for carriers,” said Edward Kohlberg, director, AM Best.Other report takeaways include:Canada’s life/insurance segment saw a 24% decline in net investment results in 2025 to just over CAD 6.7 billion following a 33% increase in 2024.Total Canadian life insurance new annualized premium reached a record high of CAD 2.3 billion in 2025, according to LIMRA, mainly driven by whole life premiums, which grew 10%.The regulatory prescribed Life Insurance Capital Adequacy Test (LICAT) and Capital Adequacy Requirements Guideline for Life and Health Insurance ratios (CARLI) have been maintained by AM Best-rated insurers notably above supervisory targets.This Best’s Market Segment Report is one of several reports focused on Canada’s major insurance segments ahead of AM Best’s Insurance Market Briefing – Toronto, which will take place Wednesday, Sept. 23, 2026. For more information about the complimentary AM Best’s Insurance Market Briefing – Toronto, please visit the event website.AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.View source version on businesswire.com: Ed KohlbergDirector+1 908 882 1979edward.kohlberg@ambest.comKevin VarvaroSenior Financial Analyst+1 908 882 2410kevin.varvaro@ambest.comChristopher SharkeyAssociate Director, Public Relations+1 908 882 2310christopher.sharkey@ambest.comAl SlavinSenior Public Relations Specialist+1 908 882 2318al.slavin@ambest.comThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.