When AI bots take over a job, they don’t need massages and they don’t age—and therefore have no need for insurance or retirement benefits.

That’s one of the problems facing Canadian global financial giants like Manulife and Sun Life. Sun Life generated $650 million in underlying net income last year offering group benefits in Canada, mostly to employers.

Chief executive Kevin Strain and Sun Life Canada president Jessica Tan say the company—and the country—must adapt quickly as AI reshapes the labour market.

“If there’s a slowdown in the economy that means there’s less people working, anybody in the employee benefits space is going to be hit by that,” Strain said at a National Bank Financial Services conference in March.

“Over the long term, will there be less people working, through AI? Probably. Will there be new jobs that come up? Yes,” he said, pointing to national defence and the Arctic as areas of potential economic growth. 

In an interview, Tan said she is trying to bring a “faster, nimble” spirit of entrepreneurship to the Canadian insurance market, to see Sun Life chase new opportunities in Canada the way it does in its fast-growing Asian markets.

Their comments come as Canada’s labour market increasingly shows signs of strain. Employment figures held steady in March, but economists offered little reassurance after the April 10 release. BMO Economics described the past year’s job growth as “quite modest,” while TD’s senior economist warned “the outlook remains fraught” amid a lack of “dynamism.” 

Strain and Tan are now pushing to position Sun Life, and the broader economy, for that shift. Last month, Strain joined Prime Minister Mark Carney on a trip to China. The insurer told The Logic in an email that the visit reflected its 27-year partnership with China Everbright, and supported Sun Life’s view that Canadian firms have room to expand there. Last year, Asia eclipsed the U.S. market as a share of Sun Life’s underlying net income, contributing $836 million. Of that, about $247 million came from joint ventures in India, Malaysia, China and the Philippines. 

Tan, a former group co-CEO and board director at China-based financial giant Ping An, has also been scouring the globe for ways to ensure Canada’s economy isn’t falling behind—particularly in terms of creating new, AI-proof jobs.

Small nuclear reactors are one potential engine of job growth if the country can develop an advanced manufacturing supply chain, she said, pointing to similar strategies being discussed in Singapore and other countries. Canada’s pharmaceutical industry also has advanced talent in mRNA research at a time when AI is accelerating drug development in countries like Australia. She noted that elder care is bound to be a growing market. 

Like Japan, Canada could create a bigger economy around elder care beyond health care, expanding into services like exercise and relaxation, Tan said. 

Underlying profits in Sun Life’s group benefits division grew about 4.3 per cent between 2024 and 2025, more slowly than the asset management or individual insurance divisions, which posted profit gains of 8.4 per cent and 12.2 per cent, respectively. Analysts expect the company, which reports earnings on Thursday, to post a nearly 17 per cent year-over-year decline in earnings per share in the first quarter, according to data compiled by S&P Global Market Intelligence. 

The company has been reshaping its operations, as new, digital-first entrants like French insurance startup Alan challenge century-old incumbents. Sun Life reorganized its asset management business in January to better oversee its over $1.5 trillion in assets under management. Its real estate investment arms are pouring more money into data centres. Over the past year, Tan has also backed an internal accelerator program. 

While its employee headcount grew by about 1,900 from 2024 to 2025, Sun Life has started using AI agents to speed up paperwork like enrolment, tax statements and claims processing. Tan said efficiency gains need not come solely from cutting jobs.

Even with high-tech investments, growth may be hard won. Morningstar DBRS analysts said in a December note that Canadian insurers are likely to focus on acquisitions abroad this year because “financial market conditions in Canada are neutral to somewhat negative” due to trade-related uncertainty. 

Sun Life is looking overseas for growth, investing in Hong Kong virtual insurer Bowtie, and increasing its exposure to Malaysian joint ventures by $240 million. Tan said the company is also testing new initiatives within Canada, too, including products for self-employed workers without retirement plans and prescriptions coverage for people who lose benefits after events like divorce or job changes.

“Canada, frankly, has lots of opportunities,” she said.