Canadian households are among the wealthiest in the world on paper. They are also among the most indebted, and that combination makes Canada more exposed than most to a reversal in the AI-driven market rally.
Global household financial assets rose 8.6% to a record €268.4 trillion in 2025, according to Allianz Research's 17th annual Global Wealth Report. Rising asset prices generated roughly four out of every five euros of new wealth, while fresh household savings fell 5.4% to €4.1 trillion. After inflation, the picture is more modest: nominal assets are up 50% since 2019, but real wealth grew only 23%.
Canada ranked seventh globally in net financial assets per capita in 2025, at €135,350, according to Allianz Research.
The ranking tells only half the story. Canada's household debt ratio stood at 103.3% of GDP at the end of 2025, one of the highest among advanced economies. Only Swiss and Australian households carry higher ratios. Canadian wealth is built on a leveraged base, largely mortgage debt, and leveraged balance sheets respond more sharply when asset values fall.
North American households have leaned heavily into markets. Savers across the region put 63% of fresh savings into securities in 2025, against just 26% in Western Europe. That allocation has driven strong wealth growth over the past decade, but it also ties household finances closely to equity market performance, and to the AI-driven rally in particular.
The risk is significant. Allianz Research estimates that a 25% correction in the S&P 500 would erase approximately US$27 trillion in US household wealth and push the US economy into recession. Given how closely Canada's economy is tied to its largest trading partner, the effects would not stop at the border. They would reach Canada through trade, credit conditions, corporate earnings and Canadian households' own market holdings.
For Canadian brokers, the most immediate exposure is in D&O and financial lines. A correction of that scale would be likely to increase securities class actions and shareholder claims against Canadian issuers, particularly those with cross-listed shares or US operations. It would also test coverage written during a period of softer pricing and high corporate confidence.
The household debt picture adds a second layer. A market downturn that coincides with pressure on employment or mortgage renewals would squeeze household budgets. That could lead to lapses in life and living benefits cover, and more pressure on the personal lines premiums that households see as discretionary.
The report also shows savers moving away from insurance and pension products. Insurance and pension assets grew only 5.0% worldwide in 2025, less than half the rate of securities, which rose 12.4%. Their share of global financial assets fell to a record low of 24.8%, down 7.4 percentage points from 2005. In North America, inflows into insurance and pension products fell 40.8% in 2025.
For Canadian life insurers and advisors, that North American figure is the one to watch. It points to savers choosing direct market exposure over insurance-based savings and guaranteed products. That preference could reverse quickly if a correction reminds households of the value of guarantees, but in the meantime it puts pressure on growth.
The Allianz report also raises a longer-run question about AI and jobs. Allianz Research estimates that AI could affect approximately one in four jobs across major economies over the next three years, through reorganization (10% of jobs), augmentation (5%) and displacement (8%). If productivity gains flow mainly to profits rather than wages, asset owners capture a disproportionate share, and boards face growing scrutiny over how AI is adopted, disclosed and managed.
"AI could become the next great wealth engine, but the key question is who gets a stake in it," said Katharina Utermoehl, head of thematic and policy research at Allianz Research.
Allianz Research projects that global financial assets will grow by around 9% in 2026, before settling at 5% to 6% a year over the medium term. For Canadian brokers and underwriters, the combination of high household debt and strong market exposure means a correction would reach Canadian clients faster and harder than the country's wealth ranking suggests.
