CLHIA-ACCAP

23 9.3 per cent were first year premiums on multi-year contracts, and 78.4 per cent were renewal premiums on such contracts. About two- thirds of the 2014 total was for permanent life insurance, with 38 and 28 per cent for whole life and universal life policies, respectively. Term life products accounted for the remainder. During 2014, half of the group life insurance premiums came from groups of employees (45 per cent) and members of unions and associations (5 per cent). The remainder was generated from creditors group insurance coverage sold to individuals who had taken out a loan to make a major purchase such as a home or automobile. Annuity premiums Annuity contracts generated more than $42.5 billion or 43 per cent of total premiums and premium equivalents, achieving another new record high. Segregated fund premiums rose 13.6 per cent to $35.8 billion for market- value-based products, fuelled by strong growth in individual products. At the same time, general fund premiums for fixed-rate products experienced another double- digit increase of 15.4 per cent for the year. After years of tepid growth following the 2008 recession, annual growth in total annuity premiums (13.9 per cent) increased significantly during 2014, well above the average annual growth rate (5.6 per cent) of the past decade. During 2014, premiums for individual annuities rebounded (up 14.7 per cent to just over $14.6 billion) after four consecutive years of declines. Individual Canadians' confidence in capital markets recovered, driving the demand for market-value-based products in segregated funds (up 18.9 per cent). That increase was also fuelled by funds diverted from fixed-rate general fund products (down 2.2 per cent) as low interest rates persisted. At the same time, group annuity premiums grew by 13.4 per cent to more than $27.9 billion (a new record high), as contributions to segregated funds rose by 11 per cent and investments in general fund products surged 30.1 per cent. With a 66 per cent share of total annuity premiums, group annuities continued to outpace individual annuities that had dominated the market from the late 1980s until 2001. Health benefit premiums During 2014, premiums paid to insurance providers for health benefit and disability income plans in Canada rose 2.9 per cent to almost $38.8 billion, including premium equivalents for uninsured contracts administered by life insurers and not-for-profit health care benefit providers such as provincial Blue Cross organizations. Life insurance companies received 82 per cent of the total, while 16 per cent went to not-for- profit health care benefit providers. The remainder went to property and casualty insurers and fraternal benefit societies. Ninety per cent of supplementary health insurance premiums (and premium equivalents) originated from group health plans with employers, unions or other sponsoring organizations. Insured plans accounted for 59 per cent and uninsured contracts for 41 per cent of group health plans. Group premiums for insured plans have risen more than one and a half times over the last decade, jumping from $12.7 billion in 2004 to almost $20.6 billion in 2014. Premium equivalents for uninsured group contracts have increased almost one and a half times, up from $9.9 billion to nearly $14.3 billion. The growth of group coverage is largely due to the popularity with employees of group health, dental care and disability plans partly or wholly paid for by employers. Also, these plans are offered to many other large groups, such as professional and trade associations, students, creditors and travellers, as well as small- and medium-sized employers. Meanwhile, premiums for individually purchased contracts rose 4.7 per cent over the 2013 level to almost $3.9 billion, nearly doubling over the past decade. The expansion of existing benefits and the introduction of new products have both contributed to the growth of individual health insurance. In particular, as a consequence

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