The Canadian life insurance industry has been undergoing constant market and product changes since 1950. This study is meant to identify, analyze, and document those economic and social factors that have influenced the growth and decline in sales of ordinary; group and industrial life insurance. The method by which each of these products is marketed is also examined.
Much of the information used was obtained through a series of comprehensive interviews with the personnel of a number of life insurance companies. Many factors have been isolated as having a significant impact on the sales of the various forms of life insurance. Many of these factors were identified principally from current literature in the particular field and tested by means of a correlation and regression analysis.
The study found that sales of ordinary life insurance in force has declined from 73.82 percent in 1950 to 52.79 percent in 1969. Applying net new purchases as the unit of measurement it was found that ordinary life sales have decreased from 74.76 percent in 1950 to 60.16 percent in 1969. Net new premium was decided upon as the most relevant unit of measurement for this study. Net new premium income for ordinary life increased from 80.34 percent in 1950 to 81.85 percent in 1969. It was also found that marriages and the number of full time life insurance agents have had a significant impact on ordinary life sales over the past 20 years.
Industrial life sales in force declined from 9.76 percent in 1950 to 0.60 percent in 1969. Net new purchases of industrial life declined
from 8.94 percent in 1950 to 0.045 percent in 1969. It was found that net new premium income dropped from 13.46 percent of the total premium income to 0.01 percent in 1969. The decline has been a reflection of the growth in group life policies, and the increased affluence of the blue collar worker who can now afford ordinary life policies.
Group life insurance sales have grown at an astonishing rate. In 1950 group life insurance in force accounted for 16.40 percent of the total life insurance in force. By 1969 the figure had climbed to 47.10 percent of the total amount in force. Net new purchases of group life policies over the same period jumped from 13.50 percent in 1950 while 18.12 percent of the total premium income in 1969. It was also found that gross national product, total employment, and the number of federally registered life insurance companies have each had a significant impact on the aggregates sales of group life over the past 20 years. / Business, Sauder School of / Graduate
| Identifer | oai:union.ndltd.org:UBC/oai:circle.library.ubc.ca:2429/33888 |
| Date | January 1971 |
| Creators | Rollins, Victor John |
| Publisher | University of British Columbia |
| Source Sets | University of British Columbia |
| Language | English |
| Detected Language | English |
| Type | Text, Thesis/Dissertation |
| Rights | For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use. |
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