Canadian Life Insurance Industry

Content

• 1. Introduction
  • 1.1 Industry Definition
  • 1.2 Industry Segments
• The Canadian Insurance Industry includes the following three segments:
• Direct individual life, health and medical insurance
• Direct general property and casualty insurance
• Direct private automobile insurance
• 2. Market Dynamics
  • 2.1 Market Overview
  • The consolidation in the Canadian life insurance market due to the demutualization of life insurers in 1999 has led to a near-oligopoly with the top three players holding 90% of the market share (in terms of assets) in 2005
  • 2.2 Trends
  • Rising Life Insurance Claims
  • Low New Application Activity
  • 2.3 Key Drivers
  • Higher Life Expectancy
  • Increase in Distribution Channels
  • 2.4 Major Issues and Implications
  • Shortage of Insurance Distributors
  • Declining Savings Rate
• 3. PEST Analysis
  • 3.1 Political Factors
  • Bancassurance Ban Hurting Consumer Interest
  • Amended Bank Act Facilitating Strategic Alliances
  • OSFI Regulates Capital Adequacy
  • Proposal to Increase Transparency in Disclosing Incomes
  • 3.2 Economic Factors
  • Growing Economy Increases Insurance Investments
  • 3.3 Social Factors
  • Lower-Income Citizens Under Served
  • Increasing Dependency Ratio Driving Premiums
  • 3.4 Technological Factors
  • Improving Web Solutions to Attract Brokers
  • CSIO-driven Automation Standards for Broker Distribution Channel
• 4. Michael Porters Five Forces Analysis
  • 4.1 Buyers/Customers Power
  • Consolidation among Insurance Brokers
  • Restrictions on Bancassurance Reduces Information Availability
  • 4.2 Suppliers Power
  • Reinsurers Losing Business
  • Actuaries Being Poached by Consulting Firms
  • 4.3 Rivalry among Competitors
  • Few Players Ruling the Market
  • Mergers Changing the Face of Competition
  • 4.4 Threat of New Entrants
  • Regulations Might Allow Entry of Banks
  • 4.5 Threat of Substitutes
  • Products such as Annuities and Retirement Plans
• 5. Competitive Landscape
• The section provides detailed profiles on Manulife Financial Corp, Sun Life Financial Inc (SLF) and Great-West Lifeco Inc.
  • 5.1 Competitive Positioning
  • Comparison of the companies has been done on the basis of key business segments, product range, geographical presence and distribution channels
  • 5.2 Competition Strategies
  • It lists the strategies adopted by Manulife Financial, SLF and Great-West Lifeco
  • 5.3 Financial Analysis
  • 5.3.1 Income Statement Analysis
  • Income statement analysis is based on revenues, operating margins, net premiums earned and net income
  • 5.3.2 Balance Sheet Analysis
  • Comparative analysis of liquidity ratios and performance ratios of the three competing companies
  • 5.4 Stock Performance
  • Comparison of stock market performance of Manulife Financial, SLF, Great-West Lifeco and S&P TSX Financials Index
• 6. Industry Outlook
• The proposal of opening up of insurance distribution services through banks is expected to increase the competition in the life insurance business and provide a boost to merger and acquisition activities between banks and insurers
• Appendix I: Conferences and Annual Meetings
• 86th Annual IBAO Conference - Insurance Brokers Association of Ontario
• Insurance Claims Technology Forum: Transforming Claims Processing
• KPMG's 15th Annual Insurance Issues Conference
• 'Risky Business' - Atlantic Conference of Insurance Brokers
• Appendix II: Industry Associations and Organizations
• The Canadian Life and Health Insurance Association (CLHIA)
• The Insurance Brokers Association of Ontario (IBAO)
• Canadian Insurance Accountants Association

• Tables
• Tab 4.1 Acquisitions (1996-2004)
• Tab 5.1 Top Ten Life insurance Companies by Revenue (2005)
• Tab 5.2 Top Ten Life Insurance Companies by Total Assets (2005)
• Tab 5.3 Competitive Positioning
• Figures
• Fig 2.1 Direct Life Premiums Written (2004-2005)
• Fig 2.2 Life Insurance Benefit Payments (2001-2005)
• Fig 2.3 Canadian Life Insurance Application Activity (June 2005-June 2006)
• Fig 2.4 Canadian Life Expectancy (2000-2005)
• Fig 2.5 Households Savings rate (2000-2005)
• Fig 4.1 Market Share of Top Three Firms (2005)
• Fig 5.1 Revenue (2003-2005)
• Fig 5.2 Operating Margin (2003-2005)
• Fig 5.3 Net Premiums Earned (2004-2005)
• Fig 5.4 Net Income (2004-2005)
• Fig 5.5 Return on Assets (2004-2005)
• Fig 5.6 Return on Capital (2004-2005)
• Fig 5.7 Return on Common Equity (2004-2005)
• Fig 5.8 Stock Performance (Aug2005-Jul2006)