In a financial landscape where billions of dollars flow in premiums and claims, Canada’s insurance industry, a powerhouse valued at a quarter-trillion dollars in direct premiums, stands as a critical pillar of economic stability for households and businesses from coast to coast.
Key Takeaways
- In 2022, the total gross premiums written by the Canadian property and casualty insurance industry reached $78.4 billion, marking a 5.2% increase from 2021 driven by higher auto and commercial lines premiums.
- The Canadian insurance market size was valued at approximately CAD 250 billion in direct written premiums in 2023 across all lines of business.
- Canada's P&C insurance sector accounted for 38% of the total insurance market premiums in 2022, totaling $82.1 billion in net premiums earned.
- In 2022, personal property premiums in Canada's P&C sector totaled $25.6 billion, up 6.1% from prior year due to rising home values.
- Commercial property premiums reached $12.4 billion in 2022, growing 4.3% amid economic recovery.
- Auto insurance premiums across Canada hit $32.8 billion in 2022, with private passenger at $28.1 billion.
- In 2022, total P&C claims incurred in Canada amounted to $54.2 billion, with a loss ratio of 68.4%.
- Auto claims payouts reached $22.1 billion in 2022, up 7.2% due to repair cost inflation.
- Property claims totaled $18.6 billion in 2022, including $4.2 billion from catastrophes like wildfires.
- There were 192 property and casualty insurers licensed in Canada as of 2022.
- Canadian-owned P&C insurers numbered 85 in 2022, holding 45% market share.
- Life insurers totaled 68 companies operating in Canada in 2022.
- The Insurance Act was amended in 2022 to enhance consumer protections with 15 new clauses on disclosures.
- OSFI raised capital requirements for P&C insurers by 10% in 2022 for catastrophe risks.
- CLHIA updated solvency standards for life insurers in 2022, aligning with IFRS 17.
Canada's insurance industry grew strongly in 2022, led by auto and property premiums.
Claims and Losses
1In 2022, total P&C claims incurred in Canada amounted to $54.2 billion, with a loss ratio of 68.4%.
Verified2Auto claims payouts reached $22.1 billion in 2022, up 7.2% due to repair cost inflation.
Verified3Property claims totaled $18.6 billion in 2022, including $4.2 billion from catastrophes like wildfires.
Verified4Bodily injury claims in auto sector were $9.8 billion in 2022.
Directional5Commercial liability claims payouts hit $6.4 billion in 2022.
Single source6Life insurance benefits paid out $25.7 billion in 2022.
Verified7Health claims processed totaled $68.4 billion in 2022 for group and individual.
Verified8Disability claims payments were $14.2 billion in 2022.
Verified9Critical illness claims reached $1.8 billion in payouts 2022.
Directional10Ontario auto claims averaged $12,500 per claim in 2022.
Single source11Quebec catastrophe claims from 2022 floods totaled $1.2 billion.
Verified12Alberta hailstorm claims in 2022 exceeded $800 million.
Verified13BC wildfire claims payouts were $2.1 billion in 2022 season.
Verified14Manitoba flood claims totaled $450 million in 2022.
Directional15Saskatchewan crop insurance claims hit $1.1 billion in 2022.
Single source16Atlantic hurricane claims were $600 million in 2022.
Verified17Cyber claims losses reached $1.5 billion in 2022 for Canadian firms.
Verified18Homeowners water damage claims averaged $15,000 per claim in 2022.
Verified19Fraudulent claims detected saved $1.2 billion in P&C in 2022.
Directional20Long-term disability claims duration averaged 28 months in 2022.
Single source21Average life insurance claim payout was $250,000 in 2022.
Verified22Catastrophe losses insured totaled $6.8 billion in 2022.
Verified23Workers' compensation claims were $12.4 billion in 2022.
Verified24Medical malpractice claims payouts hit $0.9 billion in 2022.
Directional25Product liability claims totaled $0.7 billion in 2022.
Single source26Directors & officers claims settlements averaged $2.5 million each in 2022.
Verified27Professional errors & omissions claims reached $1.3 billion in 2022.
VerifiedClaims and Losses Interpretation
In 2022, Canada's insurance industry paid out a staggering sum to cover everything from fender benders and flooded basements to catastrophic wildfires and cyber-attacks, proving that while you can't put a price on peace of mind, the collective bill for our shared misfortunes is now well into the billions.
Insurers and Employment
1There were 192 property and casualty insurers licensed in Canada as of 2022.
Verified2Canadian-owned P&C insurers numbered 85 in 2022, holding 45% market share.
Verified3Life insurers totaled 68 companies operating in Canada in 2022.
Verified4Fraternal benefit societies numbered 42 in 2022.
Directional5Farm mutual insurers operated 92 companies in 2022 across provinces.
Single source6Foreign branches of P&C insurers: 107 in 2022.
Verified7Reinsurers licensed in Canada: 25 in 2022.
Verified8Insurance employment in Canada totaled 285,000 jobs in 2022.
Verified9P&C sector employed 142,000 people in 2022.
Directional10Life and health insurance jobs: 110,000 in 2022.
Single source11Brokers and agents numbered 120,000 licensed professionals in 2022.
Verified12Ontario had 45% of national insurance workforce in 2022 at 128,000 jobs.
Verified13Quebec insurance jobs totaled 65,000 in 2022.
Verified14Alberta employed 22,000 in insurance in 2022.
Directional15BC insurance sector jobs: 28,000 in 2022.
Single source16Insurtech firms employed 8,500 people in 2022.
Verified17Claims adjusters numbered 25,000 licensed in 2022.
Verified18Underwriters employed: 18,000 in Canada 2022.
Verified19Actuaries in insurance: 6,200 certified members in 2022.
Directional20Average salary for insurance brokers was $68,000 in 2022.
Single source21Top 10 P&C insurers held 65% market share in premiums 2022.
Verified22Intact Insurance led with 15.2% P&C market share in 2022.
Verified23Manulife dominated life insurance with 22% share in 2022.
Verified24Sun Life held 18.5% of group benefits market in 2022.
Directional25Desjardins Group captured 12% of Quebec P&C market 2022.
Single source26Aviva Canada had 8.3% national P&C share in 2022.
VerifiedInsurers and Employment Interpretation
Despite a sprawling ecosystem of 285,000 professionals from underwriters to insurtech pioneers, Canada's insurance landscape is ultimately a tale of consolidation where a handful of giants like Intact and Manulife command the lion's share of the market from coast to coast.
Market Size
1In 2022, the total gross premiums written by the Canadian property and casualty insurance industry reached $78.4 billion, marking a 5.2% increase from 2021 driven by higher auto and commercial lines premiums.
Verified2The Canadian insurance market size was valued at approximately CAD 250 billion in direct written premiums in 2023 across all lines of business.
Verified3Canada's P&C insurance sector accounted for 38% of the total insurance market premiums in 2022, totaling $82.1 billion in net premiums earned.
Verified4Life and health insurance premiums in Canada grew to $92.3 billion in 2022, representing 42% of the overall market.
Directional5The reinsurance market in Canada supported $15.6 billion in ceded premiums in 2022, aiding primary insurers' risk management.
Single source6Ontario held 35.2% of Canada's total insurance premiums market share in 2022 with $88.7 billion.
Verified7Quebec's insurance market size reached $65.4 billion in 2022, driven by compulsory auto insurance regulations.
Verified8Alberta's P&C premiums totaled $12.3 billion in 2022, up 4.8% due to energy sector exposures.
Verified9BC's insurance premiums grew to $22.1 billion in 2022, with personal lines comprising 60%.
Directional10Manitoba's market size for insurance was $4.2 billion in 2022, with high auto density.
Single source11Saskatchewan insurance premiums hit $3.8 billion in 2022, led by farm and agri-business coverage.
Verified12Nova Scotia's P&C market was $3.1 billion in 2022, growing 3.5% YoY.
Verified13New Brunswick insurance premiums totaled $2.4 billion in 2022.
Verified14Newfoundland's market size reached $2.1 billion in 2022, with high catastrophe exposure.
Directional15PEI insurance premiums were $0.6 billion in 2022, small but stable market.
Single source16NWT and Nunavut combined insurance market was $0.4 billion in 2022, focused on commercial risks.
Verified17Yukon territory's insurance premiums totaled $0.3 billion in 2022.
Verified18Canada's insurance penetration rate stood at 4.1% of GDP in 2022.
Verified19Density of insurance premiums per capita in Canada was CAD 1,950 in 2022.
Directional20Projected market size for Canadian insurance by 2025 is CAD 320 billion.
Single source21Digital insurance market segment grew to 12% of total market size in 2022 at $30 billion.
Verified22Embedded insurance within fintech apps reached $5.2 billion market size in Canada 2022.
Verified23Parametric insurance products market size hit $1.8 billion in 2022.
Verified24Cyber insurance market size in Canada was $2.4 billion in premiums 2022.
Directional25ESG-linked insurance products market valued at $4.1 billion in 2022.
Single source26Insurtech startups contributed $1.2 billion to market size via innovative products in 2022.
Verified27Group insurance market size was $45.6 billion in 2022.
Verified28Individual life insurance market size reached $28.9 billion in 2022.
Verified29Disability income insurance market was $8.7 billion in 2022.
Directional30Critical illness coverage market size totaled $6.2 billion in 2022.
Single sourceMarket Size Interpretation
While Canadians collectively winced at their rising auto premiums, the nation's insurance industry quietly grew to a quarter-trillion-dollar behemoth in 2023, proving that our penchant for managing risk is only surpassed by our ability to pay for it.
Premium Income
1In 2022, personal property premiums in Canada's P&C sector totaled $25.6 billion, up 6.1% from prior year due to rising home values.
Verified2Commercial property premiums reached $12.4 billion in 2022, growing 4.3% amid economic recovery.
Verified3Auto insurance premiums across Canada hit $32.8 billion in 2022, with private passenger at $28.1 billion.
Verified4Liability premiums totaled $9.7 billion in 2022 for P&C lines.
Directional5Personal accident and sickness premiums were $3.2 billion in 2022.
Single source6Group life and health premiums amounted to $52.4 billion in 2022.
Verified7Individual health premiums reached $14.8 billion in 2022.
Verified8Annuities premiums written totaled $18.6 billion in 2022.
Verified9Segregated funds premiums were $12.3 billion in 2022.
Directional10Ontario auto premiums averaged $1,456 per policy in 2022.
Single source11Quebec private auto premiums totaled $4.2 billion in 2022.
Verified12Alberta commercial premiums grew 7.2% to $5.6 billion in 2022.
Verified13BC ICBC basic premiums collected $2.8 billion in 2022.
Verified14Manitoba MPI net premiums were $1.4 billion in 2022.
Directional15Saskatchewan SGI premiums reached $1.2 billion in 2022.
Single source16Atlantic provinces combined P&C premiums were $8.5 billion in 2022.
Verified17Territories insurance premiums totaled $1.3 billion in 2022.
Verified18Cyber insurance premiums grew 25% to $2.9 billion in 2022.
Verified19Homeowners premiums increased 8.4% to $15.2 billion in 2022.
Directional20Commercial liability premiums hit $6.8 billion in 2022.
Single source21Directors & officers liability premiums were $1.1 billion in 2022.
Verified22Professional indemnity premiums totaled $2.3 billion in 2022.
Verified23Marine cargo premiums reached $0.9 billion in 2022.
Verified24Aviation insurance premiums were $0.7 billion in 2022.
Directional25Credit and surety premiums amounted to $1.5 billion in 2022.
Single source26Boiler and machinery premiums totaled $0.8 billion in 2022.
Verified27Farm mutual insurers wrote $2.1 billion in premiums in 2022.
VerifiedPremium Income Interpretation
While Canadians collectively winced at the rising cost of protecting everything from their homes and cars to their digital lives and even their barns, the insurance industry quietly assembled a towering money fortress worth over $200 billion in 2022, proving that peace of mind is a premium product indeed.
Regulatory and Consumer
1The Insurance Act was amended in 2022 to enhance consumer protections with 15 new clauses on disclosures.
Verified2OSFI raised capital requirements for P&C insurers by 10% in 2022 for catastrophe risks.
Verified3CLHIA updated solvency standards for life insurers in 2022, aligning with IFRS 17.
Verified4Auto insurance rate approval process reformed in Ontario 2022, capping increases at 10%.
Directional5Quebec SAAQ reformed no-fault auto regime in 2022, reducing claims costs by 5%.
Single source6Alberta UPC phased out minor injury caps in 2022 for auto claims.
Verified7BC ICBC shifted to no-fault model fully in 2022, saving $1.2B in claims.
Verified8Federal privacy laws updated in 2022 for insurance data sharing under PIPEDA.
Verified9AMF Quebec fined 12 insurers $4.5M for mis-selling in 2022.
Directional1092% consumer satisfaction rate with insurance claims handling in 2022.
Single source11Complaints to ombudsman totaled 15,200 in 2022, down 8% from 2021.
Verified12Digital policy issuance rose to 45% of new policies in 2022.
Verified1368% of Canadians shopped for insurance online in 2022.
Verified14Average auto policy renewal rate was 85% in 2022.
Directional15Home insurance penetration rate: 92% of households in 2022.
Single source16Life insurance coverage gap affected 40% of Canadians in 2022.
Verified1775% of group benefits plans offered mental health coverage in 2022.
Verified18Cyber insurance adoption by SMEs reached 28% in 2022.
Verified19ESG disclosure mandatory for insurers over $1B assets in 2022.
Directional20IFRS 17 implementation delayed to 2023 but prep in 2022 cost $500M industry-wide.
Single sourceRegulatory and Consumer Interpretation
In 2022, the Canadian insurance industry, while being fined, reformed, and digitally prodded into better behavior, mostly managed to keep its customers satisfied despite the costly and complicated task of simultaneously protecting them from catastrophes, privacy breaches, and their own coverage gaps.
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