CLHIA-ACCAP

Canadian Life and Health Insurance Facts - 2020

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17 Canadian Life & Health Insurance Facts // 2020 Edition Retirement solutions Life and health insurers manage retirement savings for over 8 million Canadians Over eighty-five per cent of small businesses that provide pensions, RRSPs, TFSAs, RRIFs to their employees offer these through life and health insurers. Sources of annuity contributions Annuities aren't like other retirement income products. Here's what they offer that's different: Benefits of owning annuities Growth in retirement assets held by insurers over the past decade has been driven mostly by accumulation annuities - up an average of six per cent annually since 2009. Growing assets to support retirees 2019 annuity contributions $ 50.5B 2019 2017 2015 2013 2011 44% 32% 8% 7% 7% 8% 9% 16% 49% 30% 14% 52% 28% 13% 54% 26% 12% 56% 23% 12% 2009 43% 33% 16% 8% Lifetime income benefits Solutions for pension plan de-risking Maturity guarantees 79% of assets are in the accumulation stage – up from 76% a decade ago Pension plans RRIFs RRSPs & TFSAs Non-registered savings Group payout Individual payout Group accumulation Individual accumulation $ 450B $ 500B $ 350B $ 250B $ 200B $ 300B $ 400B $ 150B $ 100B $ 50B Annuities are a savings product that pay guaranteed income regularly in exchange for upfront contributions. These products protect individuals from the risk of outliving their savings and are often used to provide retirement income. Sold as: Individual policies: 30%; Group plans: 70% Related products: Segregated funds Product profile

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