10 Biggest Life Insurance Companies in Canada
Discover the top 10 biggest life insurance companies in Canada! Explore the benefits of large and small insurers, find expert insights, and make informed choices for securing your family’s future.
10 Minute read
Originally published: August 21, 2023
10 Biggest Life Insurance Companies in Canada
Discover the top 10 biggest life insurance companies in Canada! Explore the benefits of large and small insurers, find expert insights, and make informed choices for securing your family’s future.
10 Minute read
Originally published: August 21, 2023
As you grow older, the safeguarding of your family’s future remains a priority, therefore opting for a reputable insurance provider becomes essential. Navigating the sea of options becomes easier with the aid of numerous online resources, assisting you in comparing life insurance providers. While a universal “best” company is subjective and varies depending on your needs, this article will outline the 10 biggest insurance companies in Canada!
In this article:
The Biggest Life Insurance Companies in Canada
The following list is based on a few factors; the annual premiums they bring in, their financial stability rating, and their total global assets. These factors are tell-tale signs of how many policies they hold and the amount of people they serve, and are able to pay out in the case of a claim.
The full list of the largest life insurance companies in Canada (2023):
- Manulife
- Canada Life
- Sun Life
- Desjardins
- Industrial Alliance (iA)
- RBC Insurance
- Beneva
- BMO Life
- Co-operators
- Ivari
Manulife Financial
Total assets: $849 billion
Financial Strength Rating (AM Best): A+
Gross written premiums: $37.9 billion
Headquarters: Toronto, ON
Manulife presents an extensive range of life and living benefits products, and it also underwrites products from various other firms. Positioned as one of the three foremost life insurance companies in Canada, Manulife holds a notable stature within North America’s financial services landscape. This recognition extends to its subsidiary, John Hancock.
Canada Life
Total assets: $394.0 billion
Financial Strength Rating (AM Best): A+
Gross written premiums: $54.3 billion
Headquarters: Winnipeg, MB
Canada Life has united with two other names – Great-West Life and London Life – now functioning seamlessly under the singular banner of Canada Life. Their scope extends across an impressive array of life and living benefits products. A distinctive gem in their offerings is the robust disability product featuring a standout element, the Lifetime Benefit. In 2017, Great-West Life accomplished another milestone by acquiring Financial Horizons Group Inc, a notable Canadian MGAs (Managing General Agency).
Sun Life Financial
Total assets: $330.9 billion
Financial Strength Rating (AM Best): A+
Gross written premiums: $26.9 billion
Headquarters: Toronto, ON
Sun Life presents an expansive selection of life and living benefits products, even encompassing products from various external firms. In its history, Sun Life has successfully acquired multiple insurance companies, including the notable acquisition of Clarica Insurance in 2002. Within the Canadian life insurance landscape, Sun Life stands strong as one of the foremost giants.
Desjardins Insurance
Total assets: $407.1 billion
Financial Strength Rating (AM Best): N/A
Gross written premiums: $11.8 billion
Headquarters: Levis, QC
Hailing from Quebec, Desjardins Insurance is a subsidiary of Desjardins Group. They provide a comprehensive suite of offerings, including life, disability, critical illness, and group benefits. In 2018, Desjardins Group made waves by acquiring State Farm Canada, successfully integrating them into the Desjardins brand. Adding to their achievements, in 2023, Desjardins Group acquired IDC Worldsource Insurance Network Inc. (IDC WIN), a prominent managing general agency for life and health insurance plans in Canada.
Industrial Alliance
Total assets: $87.4 billion
Financial Strength Rating (AM Best): A+
Gross written premiums: $13.1 billion
Headquarters: Quebec City, QC
Originating in 1887, Industrial Alliance (iA), headquartered in Quebec, underwent a rebranding in 2015, emerging as Industrial Alliance Financial Group. Their services encompass individual life insurance, group insurance, individual wealth management, and group savings and retirement plans. Notable achievements include the acquisition of Hollis Wealth Management in 2017 and the acquisition of PPI Management Inc., one of Canada’s major Managing General Agencies (MGAs), in 2018. Setting them apart is the unique offering of a decreasing term plan.
RBC Insurance
Total assets: $15.1 billion
Financial Strength Rating (AM Best): A
Gross written premiums: $4.2 billion
Headquarters: Mississauga, ON
RBC Insurance: RBC Insurance serves as the insurance division of the Royal Bank of Canada. They act as a distributor for both Property and Casualty Insurance products (underwritten by Aviva) and their proprietary Life and Living Benefits insurance offerings.
Beneva
Total assets: $25.1 billion
Financial Strength Rating (AM Best): A
Gross written premiums: $6.2 billion
Headquarters: Quebec City, QC
Originated in Quebec, companies SSQ and La Capitale merged in 2020 to form Beneva. In the beginning of 2023, their name was officially changed to Beneva now standing as one of the premier insurance companies based in Quebec. Beneva’s portfolio extends to encompass both Property and Casualty as well as Life Insurance products.
BMO
Total assets: $11.2 billion
Financial Strength Rating (AM Best): A
Gross written premiums: $2.0 billion
Headquarters: Toronto, ON
BMO Insurance operates as an insurance provider linked to the Bank of Montreal (BMO). Its inception dates back to June 2009 when BMO acquired AIG Life Insurance Company of Canada (AIG Life of Canada). BMO Insurance’s portfolio includes an extensive array of life and critical illness insurance offerings.
Co-operators
Total assets: $19.4 billion
Financial Strength Rating (AM Best): A
Gross written premiums: $4.9 billion
Headquarters: Guelph, ON
Starting as a cooperative serving prairie farmers in 1945, Co-operators Life Insurance has evolved remarkably. Today, their spectrum includes life insurance, group insurance, and wealth management products, alongside property and casualty offerings. Within the umbrella of The Co-operators Group Limited lie various entities, such as Co-operators Life Insurance Co., Co-operators General Insurance Co., CUMIS, Edge Benefits Inc., Sovereign Insurance & Premier Group of companies, and more.
Ivari
Total assets: $12.1 billion
Financial Strength Rating (AM Best): A+
Gross written premiums: $989.4 M
Headquarters: Toronto, ON
Originally a division of the American Transamerica insurance company, Transamerica was later purchased by Wilton Re, a reinsurance firm. After the acquisition, it underwent a rebranding as Ivari and is now situated in North York, Ontario. Ivari provides a range of financial products including term and universal life plans, critical illness insurance, and investment options. Additionally, the company offers a unique solution catering to children who might otherwise be considered uninsurable.
The Canadian Life Insurance Industry
Over 22 million Canadians enjoy life coverage, collectively valued at an impressive $5.3 trillion. Notably, insurance providers disbursed $14.3 billion in benefits, encompassing $8.8 billion in death benefits and $5.5 billion for dividends, cash surrenders, and disability benefits.
Currently, there are 77 life insurance companies operating in Canada as of 2022. However, it’s essential to differentiate between 47 actual life insurers and 30 subsidiaries and affiliates. This information stems from the authoritative 2022 report of the Canadian Life & Health Insurance Association (CLHIA). Contrary to misconceptions, the figure of 150 companies is inaccurate. In reality, Canada boasts over 150 life and health insurers, out of which 77 are exclusively dedicated to life insurance.
Canadian life insurance preferences shape up as follows:
- Group plans claim a significant 66 percent of sales
- Individual policies constitute the remaining 34 percent, based on CLHIA insights
- The majority of Canadians opt for individual term life insurance coverage, while group life insurance covers multiple individuals under a unified contract.
Popular life insurance product breakdown in Canada:
40%: Individual term life insurance
35%: Group term life insurance
Benefits of Choosing Coverage from a Large Company
Ensuring peace of mind and financial security depends on selecting the right life insurance company. The following points illustrate the rationale behind considering coverage from prominent insurers:
Financial Stability: Opting for coverage from larger insurance companies offers the advantage of their financial stability. These companies possess substantial resources and cater to a diverse clientele, boosting their ability to weather economic fluctuations and unforeseen contingencies. This stability translates to meeting financial obligations promptly and efficiently, including the settlement of claims.
Verifying Financial Standing: You can gauge the financial standing of Canadian life insurance companies through platforms like AM Best, the premier credit rating agency specializing in insurance. For instance, credit rating agency AM Best awarded Canadian Premier an ‘A’ (Excellent) rating.
Comprehensive Coverage Options: Prominent life insurance providers, including major banks, typically present an extensive list of coverage options catered to diverse needs. This includes larger coverage amounts, the flexibility to select add-ons such as child coverage, and the potential to bundle with related products such as disability or critical illness insurance. Additionally, offerings like Synergy from Manulife consolidate life, disability, and critical illness coverage under a single policy.
Seamless Claim Settlement: The core purpose of insurance lies in mitigating potential risks. In the unfortunate event of a claim, larger insurance companies are well-equipped to handle the process with efficiency. As they are equipped with dedicated claims departments staffed by experienced professionals, they facilitate a smooth and timely claims settlement process. Their financial expertise allows them to manage multiple claims simultaneously without compromising their ability to meet obligations.
Proven Track Record: Prominent insurance entities often have a rich history and a well-established reputation within the industry. Their consistent track record proves their reliability and commitment to customer service. However, research of customer reviews, and examination of their Better Business Bureau rating remain crucial steps.
Exceptional Customer Support: Navigating insurance matters can be complicated. Larger insurers offer customer support infrastructures, featuring representatives who address queries, make policy changes, and guide you throughout your insurance journey. This emphasis on customer support ensures access to assistance, enriching your overall experience. Keep in mind though, that high call volumes might result in extended wait times for customer service; platforms like InsurEye provide insights through customer reviews.
Technological Advancements: Prominent insurers heavily invest in technology, streamlining operations and enhancing customer interactions. Online platforms and mobile apps may enable you to conveniently manage policies, access information, file claims, and receive real-time updates. Embracing technology simplifies interactions with your insurance company, saving time and effort. However, some companies (such as BMO) may require certain processes to be conducted via phone with an advisor.
Considerations of Choosing a Smaller Company
When it comes to selecting the ideal life insurance provider, venturing into the world of smaller companies can offer a host of compelling reasons. Here’s why considering a smaller insurance company might be an effective choice:
Personalized Attention: Smaller Canadian life insurance companies excel in delivering personalized service to their clients. With a smaller client base compared to their larger counterparts, they can offer you individualized attention. This translates to receiving advice and guidance tailored precisely to your needs and financial situation.
Competitive Rates: Smaller insurers often hold an advantage in offering more competitive life insurance premiums. Their leaner operational costs usually translate to more cost-effective coverage for you. This affordability is especially valuable if you’re seeking budget-friendly solutions or cost-conscious options.
Flexibility and Tailoring: Flexibility is a vital benefit of going with smaller life insurance companies. They often show a willingness to mold their coverage options to cater to unique situations or specific necessities. This adaptability is helpful when you require policies customized to your distinct preferences or tailored to your unique life circumstances.
Streamlined Communication: Navigating communication channels becomes notably easier with smaller insurance providers. With a reduced client volume, reaching out to a representative for queries or assistance becomes effortlessly direct. This direct line of communication improves your overall experience.
Niche Expertise: Certain smaller Canadian life insurance companies carve a niche by catering to specialized markets or particular demographics. Their expertise may encompass catering to individuals with distinct health conditions or those engaged in high-risk professions. If you fall within these specific categories, opting for a smaller insurer with targeted proficiency might ensure a deeper understanding of your circumstances, leading to more tailored coverage solutions.
Note that with smaller insurance companies, you run the risk of your company becoming insolvent, especially if their financial stability rating is low.
Frequently Asked Questions (FAQs) About Life Insurance
Selecting the best life insurance company is a subjective process dependent on your unique needs and preferences, or even location. Check out our article on the 5 Best Life Insurance Companies in Ontario.
Platforms like AM Best, a prominent credit rating agency, offer insights into a company’s financial standing. Canadian Premier, for instance, holds an ‘A’ (Excellent) rating.
Larger insurers have dedicated claims departments, streamlining the claims process. Financial strength enables them to manage multiple claims simultaneously without compromising their commitments.
Evaluate your needs, preferences, and circumstances to align with an insurer that meets your goals, whether that’s a larger company or a smaller specialized one. Contact us at Protect Your Wealth and let us guide you to the right company!
Find a solution for what you’re looking for
From the stability and comprehensive options offered by prominent insurers to the personalized attention and tailored solutions provided by smaller companies, each choice comes with its own merits. The Canadian life insurance industry thrives with over 22 million individuals covered, and its diversity offers solutions for a multitude of preferences.
As you embark on this journey to safeguard your loved ones, remember to weigh the benefits and considerations carefully. Whether you opt for the giants in the field or the specialized players, your decision should match with your objectives, preferences, and unique circumstances. At Protect Your Wealth, we communicate and understand that everyone has different needs when it comes to life insurance – let us guide you to the best fitted policy and provider for you.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today. We’re proudly based out of Hamilton, and service clients anywhere in Ontario, Alberta, and British Columbia, including areas such as Waterloo, Maple Ridge, and Grande Prairie.
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